Organization analysis: An application of cusp catastrophe theory

Abstract

An organization is a complex system that consists of many departments involving each other. Thus, internal and external factors can complexly impact the organization. The changing in these factors can also trigger latent problems of an organization. If the problems are accumulated, the organization can be led into an unstable state. This article focuses on applying a stochastic cusp catastrophe to construct a model for monitoring the organization status. In addition, we employ internal strengths and external risks of the companies as the important control factors for both asymmetry and bifurcation sides. Finally, the model is reviewed by using two statistical testing methods: the presence of the bifurcation point, and the fitness of the model using the Cusp fit package in R software. The results show that the Cusp model is better than both linear and logistic models.