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rahulg83
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Experts in management theory are moving away from the behavioralist approaches to business management that look to optimize employee productivity as a way to improve a business' profitability. Such approaches identify an individual's basic psychological needs and prescribe motivational strategies and management models to cater to such needs. Increasingly, these experts view business management in terms of "complexity theory", which postulates that a company is not the sum of its individual workers, but rather a multifaceted and self-sustaining entity, or complex adaptive system, that is subject to unpredictable external factors.
Journalists and business executives recognize that complexity theory represents a drastic shift in business management theory. However, many also display a poor understanding of how complexity theory applies to today's business environment. Some view complexity theory as an unstructured approach to business management; others view it as a hypothetical framework with few practical applications.
Complexity theory is neither of these. It accounts for the complexities of business development and provides a means for managers to make informed decisions quickly and effectively. Complexity theory relies on some basic principles. First, it assumes that a company is better off in a state of flux, for it is only in a state of non-equilibrium that a business can explore its full potential. Secondly, it posits that a company faced with a threat or opportunity must move to a state close to chaos in order to optimize its ability to utilize innovative solutions. Third, it presumes that the components of a system, or the employees at all levels of a company, will establish an appropriate order out of the chaos. Finally, unforeseen changes are inevitable, so it is impossible to direct the linear development of a company.
To understand complexity theory, it is important to understand how managers function within complex adaptive systems. Complex adaptive systems may be subject to unpredictable elements, but they are not without structure. It is therefore a manager's job to manipulate a company's natural order to most closely approximate the desired result. Thus, instead of imposing artificial constructs for behavior and productivity, managers must understand how different factors both within and outside the system are interconnected and must react to changes accordingly.
It can be inferred from the passage that which of the following would likely be a major difference between Manager P, who uses a complexity theory based approach to management, and Manager Q, who uses a behavioralist approach?
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Manager P finds motivational strategies which suit employees' needs; Manager Q does not.
*
Manager P implements artificial constructs to increase profitability; Manager Q does not.
*
Manager P considers the dynamics of the group when responding to change; Manager Q does not.
*
Manager Q believes innovation comes from pushing a company into chaos; Manager P does not.
*
Manager Q considers employee productivity to be important to a company's success; Manager P does not.
Journalists and business executives recognize that complexity theory represents a drastic shift in business management theory. However, many also display a poor understanding of how complexity theory applies to today's business environment. Some view complexity theory as an unstructured approach to business management; others view it as a hypothetical framework with few practical applications.
Complexity theory is neither of these. It accounts for the complexities of business development and provides a means for managers to make informed decisions quickly and effectively. Complexity theory relies on some basic principles. First, it assumes that a company is better off in a state of flux, for it is only in a state of non-equilibrium that a business can explore its full potential. Secondly, it posits that a company faced with a threat or opportunity must move to a state close to chaos in order to optimize its ability to utilize innovative solutions. Third, it presumes that the components of a system, or the employees at all levels of a company, will establish an appropriate order out of the chaos. Finally, unforeseen changes are inevitable, so it is impossible to direct the linear development of a company.
To understand complexity theory, it is important to understand how managers function within complex adaptive systems. Complex adaptive systems may be subject to unpredictable elements, but they are not without structure. It is therefore a manager's job to manipulate a company's natural order to most closely approximate the desired result. Thus, instead of imposing artificial constructs for behavior and productivity, managers must understand how different factors both within and outside the system are interconnected and must react to changes accordingly.
It can be inferred from the passage that which of the following would likely be a major difference between Manager P, who uses a complexity theory based approach to management, and Manager Q, who uses a behavioralist approach?
*
Manager P finds motivational strategies which suit employees' needs; Manager Q does not.
*
Manager P implements artificial constructs to increase profitability; Manager Q does not.
*
Manager P considers the dynamics of the group when responding to change; Manager Q does not.
*
Manager Q believes innovation comes from pushing a company into chaos; Manager P does not.
*
Manager Q considers employee productivity to be important to a company's success; Manager P does not.
