1. Complex Social Systems: Rising Complexity in Business Environments an exploratory discussion “Complexity is messy and takes time to understand.” -Deborah Campbell

2. Complex Social Systems: Rising Complexity in Business Environments 1 of 7 Introduction Genesis: Trying to model increased business environmental complexity Saw need to identify universal environmental factors Method: Brainstorming, hypothesis formation, literature review homogeneous output heterogeneous output cc scale Complexity in Social Systems: The number of incorrect possible choices for every correct choice

3. Complex Social Systems: Rising Complexity in Business Environments 2 of 7 Historical Perspectives Is there a progression toward complexity in Management theory? 1910s: Frederick Taylor’s Scientific Management: determination of uniform methods in manufacturing (“the one best way”). Standardized tools and practices. 1930s: The Human Relations School: continued to control workers closely, but introduced a ‘bottom-up’ perspective. 1950s: The Carnegie School: introduced social psychology and an individual level of analysis to the workplace. 1970s: Institutionalism: social behavior, culture, ideals, world views and symbols are key inputs into organizational dynamics. 1960s: The Contingency School: a shift of attention from structure to process and contextual variables (the “fit” between structure and environment). Increased uncertainty requires loosened control, participation, communication. 1990s: Business Process Re-engineering: wholesale movement to restructure from hierarchical to distributed structures.

4. Complex Social Systems: Rising Complexity in Business Environments 3 of 7 Measuring Complexity General Measures –Software analysis tools –Matrix typology, graph theoretic Case-Specific Measures –Dynamic density for air traffic control –Hewlett-Packard conceptual model and simulation

5. Complex Social Systems: Rising Complexity in Business Environments 4 of 7 Environmental Factors that Drive Increased Complexity in Business Organizations 1.Globalization The increased mobility of goods, services, labor, technology and capital throughout the world (Government of Canada) 2. Increased Use of Technology Technology permeates all aspects of a business Particular emphasis on communication channels

6. Environmental Factors: Globalization Opens up many new choices and possibilities Number of wrong choices increases Number of interdependencies increases –Supply chains –Marketing agreements Complex Social Systems: Rising Complexity in Business Environments 5 of 7

7. “People working on complex, non-routine, 'unanalyzable' problems prefer and benefit from working face to face…” Key Question: Does rise of technical work make the workplace more complicated? If so, does technology contribute to less hierarchical organizations? Survey says… Environmental Factors: Technology Complex Social Systems: Rising Complexity in Business Environments 6 of 7

8. Rise in technical work and horizontal organizational structure of technical workers increases collaboration and non-hierarchical communication. - Powell (1990), Barley (1994) Evidence that today’s organizations are less hierarchical (more networked)… 17 papers from 1967 to 1995 Environmental Factors: Technology Complex Social Systems: Rising Complexity in Business Environments 7 of 7

9. Complex Social Systems: Rising Complexity in Business Environments T HE E ND