The mechanism behind the operation of most business organizations is that they have incorporated various independent functional units in their production line. Independence of various functional units is an important aspect as far as the overall performance of the organization is concerned because it ensures that these units are able to attain their full potential in terms of maximizing production capacity.
As much as operational independence is important with respect to the operational efficiency of the business organization in question, there is need to have a mechanism through which such independent units can be integrated. This is attributable to the fact that most activities in a business organization have some degree of interdependence and, therefore, it is essential to find a way of enabling an organization to balance between operational independence and operational interdependence. Todeva (2006) points out that integration of independent business units is an important aspect when it comes to operational management.
In this context, integration involves implementation of various mechanisms or methodologies that will make it possible for various operational units within an organization’s supply chain management system to interface with one another. Todeva (2006) asserts that the process of transforming inputs into useful output, which is basically what operational management entails, is usually dependent upon the efficiency with which various aspects involved in this transformation are integrated.
There are various methods that can be used successfully to facilitate integration of independent business units. One of these ways is implementing team work within various aspects of operational management. Team work is an important integration mechanism since it enables the organization to combine resources, including manpower, from its various independent units and apply this combination for the attainment of specific organizational goals and objectives (Hill & Jones, 2012).
In addition to the application of teamwork as an integration mechanism, another mechanism that can be used to facilitate integration of independent business units is adoption of an effective organizational structure that clearly defines the various degrees of interdependence that will exist between the units. Such structures should be specifically designed with an aim of ensuring that the units have an interface through which other units within the business organization (independent or otherwise) can link with them and, thus, facilitate integration. Besides teamwork and the use of an efficient organizational structure, the third method that can be used to facilitate integration of independent business units is centralized supervision.
Supervision is an important aspect when it comes to the operations of any business organization since it deals with the coordination of various operational activities involved in running the business organization. Supervision, therefore, ensures that operational aspects that would otherwise be regarded as totally independent from one another are accorded some degree of interdependence and, thus, facilitating integration.
There are various mechanisms through which the aforementioned integration methods can be implemented so as to ensure that they are able to attain their objective of integrating independent business units. Starting with team work; implementation, personnel, and other resources from various independent units within the organization can be combined and assigned specific operational tasks that will require input from various independent units within the organization (Hill & Jones, 2012).
Such a method will require a careful selection process with the aim of identifying the core competencies of the various operational units. This includes the competencies of the specific personnel in the units and how they can be combined for the purpose of advancing organizational goals and objectives. This will enhance the capacity of the teams to undertake these specific tasks and, thus, improve the overall performance of the business organization (Hill & Jones, 2012).
Apart from teamwork, the second integration method whose implementation will be discussed is centralized supervision. Centralized supervision can be obtained through the use of a single supervisor who oversees and coordinates the operational activities of the various independent units that the business organization is seeking to integrate (Hill & Jones, 2012). The supervisor should be tasked with responsibility of looking for ways through which various operational units under their supervision can be integrated and identifying the benefits that can be brought about through this integration.
Similar to many other aspects within the business organization, there are several advantages and disadvantages associated with the three aforementioned integration methods. Starting with teamwork, the success of team efforts is usually dependent on the goodwill and efficiency of each and every member of the team. If there is a weak link within the team, the initiatives undertaken might not be successful and this will definitely affect the overall performance of the organization (Prencipe, Davies & Hobday, 2003).
Looking at the second method, which involves adoption and implementation of an efficient organizational structure that will facilitate integration, such a method might be very costly when it comes to design and implementation. This is attributable to the fact the amount of resources and time that might be used for effecting this method might be very high and out of reach for many business organizations. Finally, centralized supervision as an integration mechanism is solely dependent on the enthusiasm and initiative of the centralized supervisor, that makes it a risky approach to integration (Prencipe, Davies & Hobday, 2003).
References
Hill, C.W., & Jones, G.R. (2012). Strategic Management: An Integrated Approach, 10th ed.: An Integrated Approach. New York: Cengage Learning.
Prencipe, A., Davies, A., & Hobday, M. (2003). The Business of Systems Integration. Oxford: Oxford University Press.
Todeva, E. (2006). Business Networks: Strategy and Structure. London: Taylor & Francis.