Managerial and organizational integration needs arising out of technical change and U.K. commercial structures. Part I: Introduction and overview

Abstract

This paper examines the importance of, and need for, managerial and organizational integration (MOI) both as a systemic response to technical change and also as a positive feature irrespective of technical change. It forms the first part of four interconnected articles. This paper provides an introductory overview of the issues to be addressed and suggests a framework for considering integration issues in relation to product and process change. The subsequent papers will provide a more detailed managerial and organizational perspective (Part II); this will be followed by an examination of managerial and organizational integration within the organic enterprise plus related educational and training requirements or developments (Part III); finally. Part IV will examine remaining policy issues and related organizational questions. The four papers, whilst forming an interdependent whole, are also arranged to stand alone. With respect to ongoing technical change, conventional wisdom argues that computer-integrated systems (e.g. computer-integrated manufacturing, CIM), or computer-assisted design and manufacture (CAD/CAM), computer-integrated engineering (CIE) and flexible manufacturing systems (FMS), require more organizationally integrated systems, with attendant changes in management skills. This series of papers suggests that integrated management skills and a more organic organizational structure are required of most companies—or that significant benefits can accrue in terms of quality of product design, manufacture and delivery if a more Integrated approach is taken. Thus, irrespective of new technologies or of central computer data banks, managerial, organizational and functional integration is a prime need and a major potential asset. However, managerial integration raises many issues relating to patterns of recruitment, of training and of retraining; organizational integration requires careful analysis regarding how technologies are used and how departmental or divisional functions are interlinked; functional integration includes both of these two perspectives but also raises major issues with regard to the skills and responsibilities demanded of, and given to, the shop-floor or related operatives. Ultimately, therefore, the major considerations regarding the achievement of more integrative systems—flexibility to changing market needs, delivering improved quality, maximizing the potential of the workforce and machinery—demand an examination of issues beyond the level of the enterprise. Similarly, in an evolving strategic and corporate planning sense, integration demands an intellectual perspective, with regard to process and product development, which not only more closely links the manufacturing strategy with corporate strategy, and links research and development policy with marketing and manufacturing functions, but also continually questions the opportunity costs of increasing skill differentiation and functional specialization. Specialization and professionalism are very necessary. However, the interlinking and cross-functional integration of such skills remain an increasing managerial and organizational challenge.