This chapter aims to consider the behaviour of organisations in the light of complexity theory. Some of the basic mathematical principles behind complexity and chaotic behaviour will be discussed, and the effect of these principles on organisations will be analysed through case studies from different areas of society.

The behaviour of all living creatures is influenced by many factors (Goodenough et al, 1993), including external pressures such as temperature and presence of food, and internal factors such as electrochemical balances. The interaction of these factors is complex enough to lead to a wide spectrum of actions in any single creature, which in themselves can lead to chaotic and complex behaviour (Sumpter, 2010). When the effects of human thoughts, incentives and society are taken into account, the potential for complexity is increased by many orders of magnitude (Stewart, 2000).

From a mathematical perspective, the roots of complexity lie in the interaction between classical mechanical behaviour (positivist) and chaotic behaviour in systems (Kellert, 1993). Complexity arises in systems that, from a mathematical perspective, are typically considered as dynamic – that is, systems in which a number of fixed rules determine how they vary in time and space. It is generally not feasible to treat organisations as dynamical systems with full mathematical rigour, as the fixed rules governing their behaviour are almost certain to have too many variables for a complete analysis to be carried out. Approximations can be made, however, based on observation and underlying mathematical principles, and can be used to develop predictions of organisational behaviour (Burt, 2010).

Classical mechanics is concerned with the behaviour of bodies under the influence of a set of forces, described by a set of physical laws. This approach is one of the oldest human scientific theories, with evidence of some understanding of classical mechanics as far back as Neolithic times. The body of knowledge was formalised in Newton’s time, building on the theories of natural philosophers such as Galileo and Kepler, and the extremely accurate observations of astronomers such as Brahe. The underlying principle of classical mechanics is that given a complete understanding of the physical laws determining the behaviour of each component of a system, and the forces acting upon each component, the future state of that system can be determined with complete accuracy.