A MATHEMATICAL MODEL OF THE ADAPTIVE BEHAVIOUR OF ORGANIZATIONS

The recent work on organizational configuration and quantum structural change by Miller and Friesen (1984), and on the population ecology of organizations by Hannan and Freeman (1978, 1983) suggests some integral relationships between eiivironments, structure and optimal adaptive strategies. These appear to warrant a more systematic and formal analysis. Towards that end a mathematical model is developed to show the way organizations adapt t o changing environments. Using a Markovian representation, three types of environments are examined t o test the implications that the model has for adopting strategies of generalism vs. specialism, concerted ‘quantum’ 71,s. piecemeal change, and batching changes together vs. changing gradually and promptly.