Balancing differentiation and Integration
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In the Theory of organizational design managers need to seek a balance between Differentiation and Integration.
- A complex organization that is highly differentiated needs a high level of Integration to coordinate its activities effectively.
- In contrast, when an organization has a relatively simple, clearly defined role structure, it normally needs to use only simple integration mechanisms.
- Managers need to be sure they do not differentiate or integrate their organization too much. Both are expensive in terms of the number of managers employed and the managerial time spent on coordinating activities.
Recommendations:
- Managers should carefully guide the process of Differentiation so an Organization builds its Core competence@mbi that give it a Sustainable competitive advantage@mbi
- Careful integrate the organization by choosing appropriate coordination mechanisms that allow subunits to cooperate and work together to strengthen its core competences
