Philosophy of Digital Man and Digital Society - 2024

Managing Organizations as Complex Social Systems in the Context of Administrative Management

The Emergence and Development of Concepts in Digital Economy and Digital Management Amidst Global Transformation

The management of organizations as complex systems and their adaptation to changes amidst digitalization, in light of rapid technological advancements and stochastic conditions, underscores an increasing necessity for organizations to act as catalysts for change during this crisis-ridden era, a requirement essential for their survival. The formation of the concept of administrative management encompasses a set of processes that ensure the seamless functioning of intricate interactions among managers, employees, and technologies, thereby fostering a synergistic team effect with a shared vision that inspires the entire group.

Today, the significance of an organization's survival in conditions of uncertainty and its adaptability to environmental changes is heightened, necessitating continuous modernization. In an environment characterized by uncertainty, the complexity of self-regulation within the system increases, the quality of which directly influences performance outcomes and the formulation of strategies to overcome management crises.

The conceptualization of new ideas, technologies, and methodologies within administrative management during these challenging times is directed toward employing a methodology of complexity, rooted in a synergistic approach that aids in navigating chaos, entropy, uncertainty, unpredictability, disorganization, and the diverse points of bifurcation in social, economic, and cultural processes while seeking attractors and significantly contributing to the operational sphere of organizations as complex systems.

The theory of complex systems posits that its foundation lies in the interaction of various management levels with feedback mechanisms; therefore, the management structure should comprise a team of professionals whose activities are grounded in digital technologies and the handling of exponentially increasing big data, within which interactions between innovations and information occur amidst the Fourth Industrial Revolution.

Synergistic methodology serves as the methodology for complex dissipative systems, promoting the development of self-organization at all levels and contributing to organizational resilience, particularly in the context of analyzing uncertainty, stochasticity, information asymmetry, and achieving sustainable development through the implementation of information and computer technologies and the enhancement of big data exploration.

It is important to note that the conditions for organizational survival amid uncertainty and adaptation to change result in rising entropy both within the organization and in society; as the environment complicates, the organization evolves toward greater complexity, necessitating adherence to the principles of flexible management, leadership, team management, and the advancement of administrative management concepts.

The synergistic method should be regarded as a methodology of complexity, self-organization, complex adaptive systems, flexible management, and intelligent digital governance, with due consideration of the social responsibility of leaders. The impact of information and communication technologies on the development of administrative management arises amidst the rapid growth of breakthrough digital technologies and the imperative to manage these changes.

Currently, we find ourselves at the dawn of the Fourth Industrial Revolution, which has emerged as a result of digital technology advancements, accelerated by the Internet, inexpensive sensing devices, artificial intelligence, and deep machine learning. Digital technologies, grounded in computer hardware, software, and networks, are becoming increasingly complex and refined, capable of transforming entire societies and the global economy. The capabilities of new machines and the rapid development of technology and human capital indicate that the swift acceleration of digital development is tied to advancements in artificial intelligence, robotics, and the creation of machines that can move and interact with the physical environments of factories, warehouses, and offices. These changes unfold rapidly as the world evolves not geometrically, but linearly, demanding from managers systematic and structured thinking, flexible management, information systematization, cognitive reorientation, rapid responses to societal changes, and immediate effective decision-making. The digital revolution fosters the emergence of a digital economy and digital management based on paradigm shifts in economics, business, society, consciousness, and human worldview.

In the digital society, systemic and profound changes are occurring, impacting all aspects of human life and acting as the driving forces that give rise to new megatrends in society, business, economics, and individual modes of existence, provoked by deep transformations—points of fundamental technological shifts and their societal impacts. The influence of the Fourth Industrial Revolution on business is perceived as an inevitable transition to digital technologies that have created revolutionary ways of connecting products and services, blurring traditional boundaries between sectors.

The essence of the concept of administrative management lies within change management frameworks, particularly as articulated by John P. Kotter. Within the context of change management, Kotter’s concept comprises eight phases of organizational change. This framework serves as a tool for systematically guiding all processes, empowering personnel to ensure lasting change within their organizations and to avoid potential pitfalls by adopting a systematic approach aimed at achieving positive and sustainable transformations.

This division, in relation to Kotter's concept, is grounded in studies of over 100 companies (1990-1995) that underwent transformation following Kotter's methodology, revealing numerous typical errors in administrative management made during organizational changes:

1. Excessive overconfidence;
2. Inability to form an appropriate coalition;
3. Underestimating the importance of clearly identifying problems;
4. Failure to articulate a clear vision to stakeholders;
5. Insufficient attention to obstacles;
6. Inability to secure short-term victories;
7. Premature declarations of victory;
8. Inconsistencies in existing corporate culture rules.

Kotter asserts that these errors can be avoided if companies understand the necessary measures to effectuate change. To this end, it is crucial to develop the concept of administrative management as a factor for sustainable organizational growth and to seek an attractor (a point of gravity) that will mobilize all subsystems within the organization. The forced implementation of “improvements” in isolated cases yields desired results only sporadically. Experts contend that solutions should be sought not within the system but in the external environment, as attractors are contingent upon the surroundings in which the system operates.

When the surrounding environment changes, it necessitates a transformation in the organization’s system and its subsystems, which in turn demands a rethinking of the organization’s survival strategy and its adaptation to these changes. Some alterations arise from the environment itself, exerting such a profound influence on attractors that systems either disappear altogether or automatically discover an alternative trajectory leading to a different attractor. This new attractor may not have existed previously. In making changes to the organizational teams, it is unwise to attempt to dislodge them from their current path, as such efforts require immense resources and can prove detrimental. It is far more effective to adjust the parameters of the environment under conditions of uncertainty until the current state of the organization or team loses its stability and eventually becomes untenable.

One must cultivate an adaptive landscape in which the organization can thrive, exceeding its adaptive capacity. This requires the development of a concept for information-innovation and noosphere development in administrative management (noomanagement) to overcome crises and respond to technological changes. Consequently, systems capable of reaching the highest peaks within the adaptive landscape stand the best chance of survival. Systems that can consistently recalibrate their internal organization engage in what might be termed an "adaptive stroll" through the relevant landscape.

The "adaptive stroll" is the process through which a system transitions from one configuration to another, preserving its adaptability to circumstances by altering functionality requirements, personnel, teams, tools, and schedules while modifying various processes. Thus, the form of the adaptive landscape depends on both the system as a cohesive entity and its surrounding environment. For this reason, survival strategies from one system cannot be easily transferred to others, as the adaptive landscapes of different organizations vary significantly.

This adaptive stroll allows the system to move from one configuration to another to maintain its adaptability, changing the demands of functionality, personnel, and tools, revising schedules, and modifying processes. The shape of the adaptive landscape is contingent on both the system and its environment. Consequently, survival strategies from one system cannot be easily applied to others, as the adaptive landscapes of different entities diverge from our own. No one can execute this in our stead. Systems adapt not only to their external environments but also to one another, co-evolving within the new conditions of informatization, digitalization, and globalization. Thus, we can observe the following:

1. The internal structure of each organization possesses its unique internal code that must be infused with new informational content.
2. Individuals or processes perform optimally only in conjunction with certain others.
3. The survival strategy of an organization must be re-evaluated, recomposing the system’s components to create an optimal configuration where the impact of each element is positive, provided that the complexities of catastrophe and chaotic fluctuations are surmounted.

Self-organization is the process through which structures or forms arise within a system not as a result of centralized or external influence or planning; it is a natural norm and behavior of typical dynamic systems, regardless of whether they are composed of atoms, molecules, viruses, biological species, or organizations. The principle of self-organization, which enables the creation of structures and forms in the absence of a directing authority imposing directives from above, pervades our entire space; it is omnipresent and serves as a breath of fresh air. Regardless of how one manages an organization, self-organization will always be at play. Anything to which management does not impose restrictions tends to self-organize, cultivating flexible processes and self-organization.

While any self-organizing system may possess its own developmental trajectory, the possible directions are constrained by the external environment. Systems resulting from creative self-organization do simply what their external environment permits and what naturally arises within them, thus fostering the concept of "self-organized teams" composed of individuals who compel one another towards collaboration and creativity.

The activity of an organization as a complex system and its adaptation to the external environment manifests within the context of complexity theory. Organizations, as complex systems, adapt to their external environments and to one another, co-evolving in the new contexts of informatization, digitalization, and globalization. The internal structure of each organization contains its internal code that must be filled with new informational content, wherein individuals or processes function well only in combination with specific teams. The survival strategy of an organization should be reassessed, reorganizing all substructural elements of the system to create an optimal configuration in which the influence of each element will be positive, provided that the challenges of complexity and chaotic fluctuations are overcome.

At the heart of modern administrative management lies the realization of complexity and innovation, software (SW), and information-communication technologies (ICT), which constitute a complex adaptive system requiring flexibility and adaptability to the intricate conditions under which organizations operate. The utilization of the potential of information-communication technologies within organizational activities should foster resilience, serving as the key to survival and the creation of a creative management process environment.

This theory of complexity and innovation encompasses effective management theories that demonstrate the emergent behavior of management establishments and team members as active subjects, thus forming a cohesive integrative management whole. The development of administrative management in the context of rapid technological advancement, stochasticity, and adaptation to change carries significant practical implications; therefore, complex issues of organizational change in organizations often propose simplified approaches, and during transformations, mistakes may frequently occur, necessitating the emergence of noospheric approaches to the management process and the cultivation of social responsibility among leaders.

In reality, even successful efforts at organizational change can be rife with surprises. However, anyone endeavoring to effect change within an organizational setting must establish the concept of noospheric administrative management tailored to the conditions of organizational survival, thereby preventing the "spreading of errors" and enabling the resolution of problems characteristic of specific types of transformations. The concept of change management in organizations has proven instrumental in assisting many organizations in surviving through challenging times of crisis.