The 1980's will be the age of the growing complexity of the business world, Economic environments were characterized by the stable and positive growth and continuity until 1970's, but are characterized by turbulent instability and discontinuity in 198...
The 1980's will be the age of the growing complexity of the business world, Economic environments were characterized by the stable and positive growth and continuity until 1970's, but are characterized by turbulent instability and discontinuity in 1980's.
Under these circumstances, many leading companies are troubling world-widely in crisis such as bankruptcy, liquidation, takeover, structural changes and relative loss of the potential growth opportunity.
The causes of mismanagement are manyfold, but recently it is argued that obsolete or incomplete management tools and theories having no competence in currently variable complex environment are one of the most important cause First -order (or classical) cybernetics based on the idaas of feedback, feedforward, equilibrium arts homeostasis was absolutely adeguate in the 1960's and 1970's, and also greatly contributed to the management theory formation.
Economic circumstances, however, haved changed in 1980's.
Therefore, management theory has to be adjusted on new grounds, and second-order cybernetics which is just on the beginning stage of study and premises the circumstances of discontinuity and instability, seems to play an important role in this process .
Whereas classical cybernetics based on the stabilization, growth, adaptation and equilibrial selfforganization deals with systems of structure maintaining behaviour, second-order (new) cybernetics based on the concepts of autopoiesis, non-equilibrial selforganization, co-evolution and evolution focusses on systems of evolutionary behaviour. Classical cybernetics inherently means inflexibility, and easily leads to lethal failure in a turbulent environment.
On the other hand, second-order cybernetic systems allow evolutions to new organizational states on a higher level through autopoietic process. The systems encourage fluctuation determined by change and reinforce it by a non-linear positive feedback until a limit of stability has been reached. This flexible activities are apt to induce innovation and survival in a turbulent situation.
. In this context, this paper introduced the basic concepts on second- order cybernetics by contrast with classical cybernetics, and tried to analyze the cybernetic rules which can be applied to actual business management being confronted with complexities of our turbulent environment.
As the present business world is dynamically interrelated, a network of rules founded on insight of new cybernetics can be used to prevent mismanagement and to set warning signals to detect unfavourable development as soon as possible.