Complex Decision-Making in Economy and Finance

8Complexity and the Theory of Organizations: Applications

The notions discussed in the previous chapters are now illustrated through a compendium of application examples which offer a variety of situations. From these applications, we will draw useful lessons for the practitioner plus guidelines on how to better control complex systems in the field.

8.1. Applications: trends and models

8.1.1. Application of the principles to steering systems

A complex system consisting of a set of interacting elements must have a synchronic structure (i.e. where events and facts occur at the same time in different places) such that emerging properties (additional and global) can appear. It must also remain within the boundaries of freedom and action (autonomy) and include elements as well as a network of relationships, feedback loops and organizational levels (subsystems).

Such a system is therefore defined by its autonomy and internal relationships as well as its relationships with the environment and other systems. At this stage, there is no system without regulation, i.e. without a protocol allowing it to maintain itself between stability (homeostasis) and change (adaptation), as found in morphogenesis, evolution and learning. In terms of organization, we cannot have a simplistic structure: for example, in complex systems, the feedback system shows that authoritarianism and one-way communication are not appropriate; however, nothing prevents the organization filtering information.

As a ...