Abstract:

All conventional organization systems move towards its end and fall down on doing business. The new economy requires some default issues for organizations anymore to meet the need of dynamic, fast-changing and fluctuated environment. Organizations should accept changing business world dynamics and shape their strategic framework to survive in destructive competition aura. The known theory explains this circumstance is the chaos theory. Chaos theory studies the behavior of dynamical systems that are highly sensitive to initial conditions, an effect which is popularly referred as the butterfly effect. It assumes random but followed a pattern behaviors, an extreme complexity and nonlinear and non-periodical system. In terms of organizational paradigm, chaos theory refers to a subset of chaos incorporates principles of quantum mechanics and presents them in a complex systems environment. Today organizations should recognize the “layout in chaos” as an inevitable part of the environment. Fractal organization is proposed as a new organization structure capable of proactively perceiving the environment and of autonomously adapting to the changing environments. The organizational structure relies on the concepts of chaos theory, fractal geometry, fractal dimension of existence and fractal structures in the universe. Fractal organization is open, self-organized, reconfigurable, self-contained and acquired its being phenomenon. This structure try to solve the similarity-differences paradox in business, discuss the recent meaning of authority and hierarchy, mention about copying all parts both similar and different, focus on “spontaneity” and explain nonlinear behavior. The fractal organization requires some drivers such as learning, inquiring, considering the business as a whole soul, selfregularity, cultural DNA, etc. This conceptual study defines the meaning of the fractal organization as a new organizational form; assumptions and features of this structure and its requirements and drivers. This paper handles businesses as fractal organisms in the chaotic environment and presents strategic formulas to struggle for survival.

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