David Peat

144 From Certainty to Uncertaintyinclude many of the social and economic environments of our presentworld, demand social organizations that are sufficiently flexible to adjustto unforeseen fluctuations, to adapt to the unknown and be willingto exploit new pathways and strategies as circumstances change.Chaos theory cautions us that complete knowledge and controlwill always elude us. Nevertheless, just as the human body must retaina measure of homeostasis when all around is changing, so too a businesscannot operate through total unpredictability, chance, and contingency.While it may be open to change, a business must also make aprofit, or at least avoid heavy losses, even when the market is unstable.Economists need to know the effects of changes in the bank rate. Governmentshave to make policies for years ahead. How then can organizationsfunction effectively while at the same time tolerating a measureof ambiguity and uncertainty in the world around them? The answer isthat a measure of flexibility and what perhaps could be calledbiodiversity is required.Chaos theory invites us to reflect upon the structures and organizationsthat surround us, from our workplace to the community inwhich we live, our golf club, religious organization, school, and eventhe national government, the United Nations, and multinational corporations.How do these organizations function? Do they appear rigidand hierarchical? Can they tolerate a degree of uncertainty? Are theyable to respond to the needs of individuals? How easy is communicationwithin and between the different levels of the organization? Aresuggestions appreciated and acted on? Is the image the organizationpresents to the outside world different from that seen by its employees?How rich are its feedback loops? How complex is its internal structure?How flexible is it to degrees of unpredictability?The structures of organizations are always present in both explicitand implicit ways. When a corporation occupies a high-rise, its structureis quite obvious. Directors and managers occupy the upper floors.They have their own individual offices, washrooms, and dining room.Those on the floors below work in open-plan offices and use a cafeteria.They are clearly lower on the pecking order.Sometimes a physical building expresses the essence of an organization,the face it wishes to present to the world. In other cases it is