Chaos Theory and Organisational Structure

Chaos Theory and Organisational Structure

The number of structures (rules and regulations) determines the performance of organizations inversely; organizational structure is determined by by external factors.
For instance, in a complex environment a small and flexible structure is preferable, while in a stable environment a big structure is appealing.
In this regard some researchers believe that organizational structure and organizational performance have an inverse 'U' relationship.
It is important to note here that in an unpredictable environment it is always difficult to identify the optimum level of structure to enhance performance.
It is to be understood that structure influences decision making and the chain of command in organizations. Chaos takes place when an organization cannot determine the optimum level of structure that will increase its performance in an unpredictable environment. In such a situation the leadership and decision making abilities of the executives are extra important.

		Comments Sort by date Sort by rating Rating
		0 Margaret Ann Lee-Harvison, United States
	Chaos Theory and Organizational and Lean Management I would like to understand more about what is meant by "an inverse 'U' relationship". Also, any opi... Sign up

		2 Belay Gezahegn Director, Ethiopia
	What is Meant by an Inverted U? @Margaret Ann Lee-Harvison: If we draw a two dimensional graph with performance on Y axis and struct... Sign up

		1 Gerald V. Todd Entrepreneur, United States
	Chaos Theory in Its Place Chaos is the stuff of nature and natural occurrences. It is also the stuff of creativity and unexpec... Sign up

		1 Gerald V. Todd Entrepreneur, United States
	Chaos Theory as a Company Grows In the 1960's the idea of brainstorming sessions had some play - I guess you could call it creating ... Sign up

		0 Jaap de Jonge Editor, Netherlands
	Custodian in Relation to Chaos Theory? @Gerald V. Todd: Thanks for sharing your valuable ideas. What do you mean with the 'custodian'? The ... Sign up

		1 Gerald V. Todd Entrepreneur, United States
	Chaos Theory as a Company Grows @Jaap de Jonge: I meant by 'custodian': the housekeeper, janitor, maid you might see everyday. Do yo... Sign up

		0 Jaap de Jonge Editor, Netherlands
	Respecting and Trusting Employees in Chaotic Circumstances Leads to Creativity and Innovation I see. And if I understand you correcly, you mean to say that for chaos to thrive in a positive way ... Sign up