Complexity theory and applications to management: principles regarding business coherence and fluent operative systems within enterprises

Authors

  • Giovanni Reyes Universidad del Rosario

Keywords:

Complexity theories, management direction, supply chain management

Abstract

The main aim of this paper is related to discuss the importance of pertinent managerial practices regarding the principles of: (i) coherence in establishing management direction; and (ii) keeping up with timing operative systems within the context of entrepreneurial logistics. At the beginning, fundamentals of complexity theory are presented; based on these essentials, the contents of this paper is devoted to the implementation of the aforementioned principles and fundamental practices. Complexity theory can bring significant theoretical elements concerning spheres of planning, organization, factor´s endowment, operations and activities´ assessment for management of units of production or enterprises.

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Author Biography

Giovanni Reyes, Universidad del Rosario

Ph.D. Economics of Development and International Relations from the University of Pittsburgh, with graduated certificates from the University of Pennsylvania and Harvard in the USA; and from the School of High Commercial Studies (HEC) Paris, France. He has been Fulbright and World Bank Scholar. Dr. Reyes has been Director of the Latin-American Economic System; he has worked for the United Nations Organization at UNICEF, United Nations Development Program (PNUD) the International Coffee Organization (ICO) at its headquarters in London, and the Vienna International Center in Austria. He has been Director of the Human Development Report Program in Venezuela; and twice, Dean of the School of Economics at the Catholic University of Colombia; currently Dr. Reyes is Associate Professor at the University Colegio Mayor de Nuestra Señora Del Rosario. All rights reserved © Giovanni E. Reyes 2013; todos los derechos reservados © Giovanni E. Reyes, 2013; tous droits réservés © Giovanni E. Reyes, 2013.

Several theoretical approaches have been written in reference to complexity as the main level or category, which include, from an epistemological perspective, structural thought and systemic approaches. This last category in turn includes endogenous factors and exogenous elements as well; more discussion, Wilson 2003; Goldberger, 1996; and Varela, 1991.

In terms of ecological issues it is necessary to point out damage for ecosystems. One of the most remarkable condition is the fiscal penalty mechanism for negative externalities. A key component here is the ownership of resources and the fact that natural resources can be of a renewable or non-renewable nature. Renewable resources are appropriated ones more likely or easily object of fiscal penalty; more conceptual elements in Waldrop, 1992; Pollak, 2007; Malloch, 2007 and Cooke, 2007.

Based on these considerations, one can conclude that the problem of ecological sustainability beyond ideological considerations is a problem of the survival of human society, which must control excessive consumerism and the society “disposable culture”. While annually go to waste a total of 1,300 million tons of food, according to statistics from the most developed countries, equivalent to the production of cereals Saharan countries or one-third of all food occur- about 1,200 million of people endure chronically lack of food; see the organizational documents of the United Nations Fund for Food and Agriculture (FAO) (http://www.fao.org/docrep/016/i2697s / i2697s.pdf ).

This dynamic scenario can usually be presented as one of “static equilibrium”. Normally it manifests in terms of formal hierarchies, but also based on informal groups that despite their nature, can have significant influence on functions and organization of companies. See: Bourne, 2007, Briggs, 1992, and Stich, 1990.

Here it should be considered three sets of issues: (i) goals or outcomes, which may include effects or externalities either positive or negative, (ii) factors, components of causality or vector axis and (iii) assumptions. It is considered here that both, administration and economy, while having scientific features, are also political exercises and practices. In enterprises one can realize of a confluence or convergence of business management, microeconomics, and industrial engineering disciplines, see Portes, 2007; Restrepo and Rivera, 2008, and Todaro, 2005.

These aspects are mostly related to the macroeconomic level. Political viability for neoliberal measures was reinforced by the pressure of interest groups associated with large corporations. In that way it strengthened the promotion and establishment of economies based on financial links, which take resources from the real economy, thus reducing the capacity to produce goods, services and employment. It came also to dismantle the capacity of welfare states and thus leverage social nets or social supports for the most vulnerable sectors; further discussion of theories concerning economics of development in Todaro, 2005.

Three works would be useful in this regard. The first two of the same author: Watson, Peter (2011) Historia de las Ideas. (Bogotá, Colombia: Taurus) Watson, Peter (2010) Historia Intelectual del Siglo XX. (Bogotá, Colombia: Taurus). The other work is Barzun, Jacques (2008) From Dawn to Decadence. (New York: Harper Collins). They show historical accounts of the influence of the Enlightenment as the culmination of Renaissance revivalism that comes to the sciences and the French Revolution. One of the most notable achievements is the Encyclopedia. It is the substitution of teo-centric approach for belief in science, the art, the effort and that work can constitute a set of effective means for solving problems. In general terms, that influence did not affect Spain. Barzun, for example in chapter 8 of his book, devotes a extensive discussion of the strategic positioning of Venice as a key city of the eighteenth century.

Three works would be useful in this regard. The first two of the same author: Watson, Peter (2011) Historia de las Ideas. (Bogotá, Colombia: Taurus) Watson, Peter (2010) Historia Intelectual del Siglo XX. (Bogotá, Colombia: Taurus). The other work is Barzun, Jacques (2008) From Dawn to Decadence. (New York: Harper Collins). They show historical accounts of the influence of the Enlightenment as the culmination of Renaissance revivalism that comes to the sciences and the French Revolution. One of the most notable achievements is the Encyclopedia. It is the substitution of teo-centric approach for belief in science, the art, the effort and that work can constitute a set of effective means for solving problems. In general terms, that influence did not affect Spain. Barzun, for example in chapter 8 of his book, devotes a extensive discussion of the strategic positioning of Venice as a key city of the eighteenth century.

According to George Odiorne, cited by Koontz & Weihrich (2012: 502) recommendations regarding the maximum effectiveness of human resources are: (i) establishing in a clear way, aims and objectives; (ii) articulated perspective and formulation of tasks and long term objectives, keeping up with motivation; (iii) constant learning processes; (iv) achieving better levels of company´s performance; (v) use of full capacities based on last generation technology; (vi) allow influences of positive feedback

 

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Published

2013-08-01

How to Cite

Reyes, G. (2013). Complexity theory and applications to management: principles regarding business coherence and fluent operative systems within enterprises. Tendencias, 14(1), 90–101. Retrieved from https://revistas.udenar.edu.co/index.php/rtend/article/view/978

Issue

Vol. 14 No. 1 (2013): Vol. XIV No. 1 Primer Semestre Enero-Junio 2013

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