According to the Chaos Theory of Management, the world is a complicated, unpredictable, and nonlinear system. This theory is referred to the systems which while showing disorder, contain a type of order hidden in them, and present nonlinear, disordered, unpredictable behavior in systems and keeps faith in an ultimate order pattern among all such disorders. 

Decision making in chaotic conditions:

All the scientific theories, along with the decision-making models, are overshadowed by the disorder in chaos theory. Earlier, failure in decision-making resulted from a lack of knowledge and lack of prediction techniques. Chaos theory assumes that the decision-making process is unpredictable, and attempts of doing so will be in vain. To be more specific, you cannot predict the future confidently and doubtlessly. 

Properties in Chaotic systems:

The properties of chaotic systems are as follows:

The butterfly effect:

The most important discovery of the Chaos Theory of Management is that even the tiniest of changes in the systems can highly impact the future state of the organization. This is called the Butterfly Effect. According to Kevin Kelly, the scientific articles' author, any small change in complicated nonlinear systems will lead to the birth of another small change, and then, the next change will lead to another one until a qualitative change takes place.

Dynamic adaptability:

The disordered systems serve like live creators. This establishes a type of active adaptability between the environment and them. The active adaptive systems have the ability of self-organization. They have the property of synergy. It means, compared to the closed and simple systems, the effort of individuals in a free and open system is more effective.

Excessive steadiness is almost never a good thing:

Balance, stability, and order are the qualities that are considered desirable in today’s world of leadership. Indeed, they are desirable but up to a certain point. Forcing rigid rules in your team may lead to uncertainty. It limits people’s opportunities to express freely, innovate, and be unique or creative. Too much repetition and equilibrium lead to the lack of ability to self-organize, adapt, and change to new conditions.

Conclusion:

The chaos theory of Management is all about balance. If chaos theory of Management is introduced carefully to the leadership methods, it can open up new and interesting perspectives. It is necessary to accept unpredictability and failure and learn from them. 

It is important to make relationships in systems. Every action has the potential to cause big changes. The rigid rules within a system stifle new ideas and creativity.

“Although the future is not predictable in any detail, it is manageable as an aggregate phenomenon.”- Herbert A. Simon.