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Complexity in Organizations and Environment - Adaptive Changes and Adaptive Decision-Making

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  • Robert Fabac

    () (Faculty of Organization and Informatics, University of Zagreb)

Abstract

The features of complexity are ever more present in modern organizations and in environments in which they operate, trying to survive and be as competitive as possible.) In the processes of, the so-called emergence, the formal organizational structure, designed purposefully and with a plan, is going through a change due to complexity and the need for adaptation. As a result, there is a variety of new informal groups. At the same time, the intended structural changes and business process changes occur because of the perception that the leadership and senior organizational management have of the strategic situation. Managers in modern organizations often use business intelligence (BI) systems when making important business decisions. These systems offer support to the decision-making by gathering and processing relevant data and information about the company performance, but also about the data on conditions in close and remote environment. A modern company is characterized by the complex adaptive system, but the environment in which it operates together with other business subjects (agents) is also complex. Consequently, the requirements for appropriate or optimal decisions and successfully completed activities are hard to meet. Given that expected future events and circumstances often occur in nonlinear mechanisms, the decisions made by following the models of traditional predicting and planning are not satisfactory. This calls for new approaches to decision making and acting.

Suggested Citation

  • Robert Fabac, 2010. "Complexity in Organizations and Environment - Adaptive Changes and Adaptive Decision-Making," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 8(1), pages 34-48.
  • Handle: RePEc:zna:indecs:v:8:y:2010:i:1:p:34-48
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    File URL: http://indecs.eu/2010/indecs2010-pp34-48.pdf
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    References listed on IDEAS

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    1. Oecd, 2001. "Understanding the Digital Divide," OECD Digital Economy Papers 49, OECD Publishing.
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    Cited by:

    1. Olabode Adeleke Oyewunmi & Omotayo Adewale Osibanjo & Hezekiah Oluwabusayo Falola & Olusola Joshua Olujobi, 2017. "Optimization by Integration: A Corporate Governance and Human Resource Management Dimension," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 265-272.

    More about this item

    Keywords

    complexity; complex adaptive systems; business intelligence; decision-making;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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