Stability and Instability

1. Overview

When organization’s relationship turn to the environment offering more products and services, the profit here is decreasing because of the need to lower prices in order to encourage and meet demand. The feedback loop here is non-linear as the organization operation is being constrained fundamentally by the economic laws of demand and diminishing return. If we look at today’s UK climate, many organizations are fore taking and being affected by the dis-economies of scales, subsequently the organization, functions – finance, capacity and skills are being continuously squeezed out by many organizations in today’s climate. The organization equilibrium behavior is suppressed; thus lowering value.

The decision making process which is the control of the organization business, is a feedback behavior and will either be linear or non-linear. Managers derive and draw up plans and time scales for achieving targets and forecast to yield profitable targets. As the organization moves through time, outcomes are measured and compared with the projected plans to determine if any off track are occurring, known as deviations in statistic terms.

2. Bounded Instability

Stacey (1992) work found that organizations that have a non-linear feedback system are being driven away from the stable equilibrium, thus, by passing a bounded instability. This instability contains complex behavior  When approaching this border, inherently unpredictability and hidden patterns emerges. The unknown hidden pattern is known as chaos because it behavior is attached and associated with it. Chaos is interpreted as containing constrained instability with combination of order and disorder in which the patterns of behavior continually unfold unpredictably and irregular patterns.

3. Inherent Instability

When a non-linear system is created, the system is moving relatively slow and unresponsive in time. As the system is unresponsive in time, the operation becomes state of stable-ness equilibrium and the behavior falls into a long term territory that eventually becomes predictable. However, by becoming too stabilised into comfortless, the organization operation will be highly sensitive to change to react to complicated paths. Organizations eventually culminate into random behavior effects within their fixed limits before the stability explodes.

4. Irregular Patterns

Chaos occurs due to the constrained nature and structure of the rule generating it. Chaotic behavior contains a qualitative pattern of which the outcomes are random, for example, an event is category, but an event is comprised of a series of other event functions within. Earlier on, hidden pattern was mentioned, hidden pattern is an essential feature that is attached to the category that is of qualitative and not quantitative content.

Summary

Instability occurs from within the organization system (environment) and the equilibrium is what occurs surrounding and conflicting the border rim outside of the organization. Chaos can only be seen through escalating and injecting small changes. Organizations that are able to cope in the instability demand can fundamentally survive

References:

Gleick, J. (1987). Chaos: Making a New Science, Heinemann, New York