In deterministic systems states or activities follow on from each
other in completely predictable ways. Future behaviour can be
predicted from the current state and operating characteristics. A
stock control system is relatively deterministic but probabilities
of supply/demand, management oddities and employee behaviour
set in. Business people work hard to develop systems which are
useful, organised and predictable. A prime example is a sales
order processing system - essential for smooth processing of
sales transactions from initial order to despatch, invoicing and
settling of customer accounts. Such sub-systems may display considerable "pre-determined
behaviour" and
operate according to pre-determined sets of rules.
But a business overall is not deterministic. Those studying business need to consider whether system bahviours can be predicted using the mathematics of probability for instance in weighing up the indeterminate factors (customer and supplier behaviour), political and economic variables etc that impact on the organisation.
The techniques of management science (operational research, simulation, statistics etc) have not fully taken us to the point of predicting the behaviour of business or organisational phenomena as a whole. Complexity and the interplay of too many variables can overwhelm the observer and analyst. Nevertheless the use of techniques which evaluate business probabilities are useful and widely used.
