Miracle
27 August 2017
MGMT 4300
Chaos Theory in Business
Chaos Theory is described to be associated with “nonlinear things that are effectively impossible
to predict or control, like turbulence, weather, the stock market, our brain states, and so on.” In
the business world, it is important for managers of people to understand the complexity of the
chaos theory of management because it is situational depending on the type of business using it.
Under the Chaos Theory, employees are said to “have almost complete freedom” and “must be
innovate and intrinsically motivated to be successful.” Therefore, managers have limited
responsibility because the setup of the company allows the employees to make decisions for the
company. The biggest take away from the Chaos theory include the free exchange of ideas,
ability to change or adjust to different situations, and the bigger variety of ideas. Some of the
most successful modern companies employing this theory are Google, Progressive, and
Southwest Airlines.
and to familiarize themselves with the concepts.