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Understanding Chaos Theory in Systems

Chaos theory describes the unpredictability of complex systems like weather patterns according to mathematical formulas. In the 1960s, Edward Lorenz discovered the butterfly effect - that small changes can have large, unpredictable effects on complex systems. Chaos theory applies to organizations as well, showing that they do not reach stable equilibrium and are subject to unexpected, dramatic changes.

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UJJAL SAHU
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220 views7 pages

Understanding Chaos Theory in Systems

Chaos theory describes the unpredictability of complex systems like weather patterns according to mathematical formulas. In the 1960s, Edward Lorenz discovered the butterfly effect - that small changes can have large, unpredictable effects on complex systems. Chaos theory applies to organizations as well, showing that they do not reach stable equilibrium and are subject to unexpected, dramatic changes.

Uploaded by

UJJAL SAHU
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

CHAOS THEORY

PRESENTED BY:
UJJAL SAHU
16/06/DBM/27
CHAOS THEORY
Chaos theory is initially a scientific principle that describes the
unpredictability of systems such as weather patterns, eco systems
and water flows.

Systems may appear to demonstrate random chaotic behaviors, they


can be defined by mathematical formulae.

In the 1960s, the meteorologist Edward Lorenz, discovered


the butterfly effect
BUTTERFLY EFFECT

A butterfly flapping its wings in Tokyo can impact


weather patterns in Chicago. Unstable forces
cause minuscule changes in the atmosphere to
have a major impact elsewhere. What may
appear to be negligible, can lead to large effects
on the entire system.
CHAOS THEORY IN ORGANISATION

Chaos exists in organisations.

The Chaos Theory ensured that decision-making


processes in organizations began to change in the 1980s.

In the 1980s, Tom Peters wrote a handbook of the Chaos


Theory, which was specifically intended for managers.
CHAOS THEORY- RELEVANCE

Industries do not Dramatic change


Long-term planning
reach a stable can occur
is very difficult
equilibrium unexpectedly

Short-term forecasts Guidelines are


and predictions of needed to cope with
patterns can be complexity and
made uncertainty
CHAOS THEORY IN OIL PRICE
THANK YOU

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