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In the modern age where business is spread globally the challenges in front of an organization are highly complex as the competition intensifies. Due to the complexity in the organizational management the older system methodology seems to become less relevant and sparingly less useful in these situations. These issues led to the introduction of complexity paradigm (Amagoh, 2008). Complexity theory was derived from the chaos and systems theory to show how a system is not confined in its boundaries and the growth or fall of an organization or a system depends upon how it is able to adapt and change to various situations.
Complexity in an organization can be defined as the heterogeneity or diversity in the internal environment factors like that of departments, customers, socio-political etc. (Mason, 2007:10). The complexity theory focuses on the affects of how parts at a micro-level can lead to major changes at the macro level (McElroy, 2000: 198; McKenzie and James, 2004: 35). The complexity of a system increases as the time goes by which in turn leads to much more changes within the system (Chakravarthy, 1997: 74). This change in systems makes it much more difficult to adapt to the changes. According to Rhee (2000: 488) the complex systems arises due to the interaction between the environment and the systems involved. In recent studies and researches done it was found that systems on the edge or on the near end of the threshold of instability usually tend to be more creative and adaptive to changes and lot of innovative behavioral approaches are produced. (Price, 2004: 44; Styhre, 2002: 347) In short we can compare complex systems to the nature around us. Just like you can't force a plant to grow you can just provide the things...

... middle of paper ... Shadow area of an organization is where people from different parts of the organization may get together to vent out ideas or talk about the organization itself. The thoughts that come out in the shadow area can be used for the positive effect. For example in a health care institute one of the executive once entered a cafeteria where doctors, nurses and some other employees were hanging out and was surprised with ideas that were produced on various matters. A true leader does not need to be threatened by the shadow system but in turn he can use the shadow area to build upon new ideas and feel the general opinion and morale of the crowd.
Complexity theory is a science that is still on the grow and is not fully explored in the broad sense. Even then the adaptation to the various complexities is important for every organization at every step of its progress.
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