Organizational Architecture - Differentiation and Integration

Differentiation and Integration

A basic consideration in the design of organizations is dividing work into reasonable tasks (differentiation) while giving simultaneous attention to coordinating these activities and unifying their results into a meaningful whole (integration). Two guidelines may be followed in grouping activities:

1. Units that have similar orientations and tasks should be grouped together. (They can reinforce each other's common concern and the arrangement will simplify the coordinating task of a common manager).
2. Units required to integrate their activities closely should be grouped together. (The common manager can coordinate them through the formal hierarchy).

When units neither have similar orientations nor share their activities, the task of grouping becomes more difficult. For example, when units are similar in nature and function but are also relatively independent, the manager must base his decision on the most appropriate way to group activities according to his past experience.

A difficult task associated with system-subsystem determination is to establish proper boundaries of operations. The more specific and distinct the goals of the operation, the easier it is to set boundaries. Other factors such as the influence of the environment, the availability of men and machines, the time schedule for design and operation, the cost of alternative designs, and the particular biases of the designers must be considered when establishing boundaries.