Any organization provides a means by which more than one person can work together to perform a given task, that any one individual
could not do by himself.
The basic functions of an organization are to divide the task into specialized units, and to provide a means by which different individuals may coordinate their activities. In every organization, sales, production and research specialists deal with different aspects of the organization’s environment.
Departments differ from each other in terms of their orientation, and their structures, because they have to perform different tasks. Difference in their ways of thinking, and their operating procedures, means that each department tends to view the task from a different perspective. Members of each department tend to be primarily focussed towards that aspect of the environment, which is required by their work.
If attempts were made to standardize the structure of each and every department, the corporation would lose the benefits of specialization.
Specialized structures and orientation facilitate a department’s activities, but the various departments have increased difficulty in attaining the degree of
coordination required for effective innovation. The departments face many problems in integrating their efforts with other departments. In other words, specialization is necessary for the performance of individual departments, but it can also have negative consequences.
Coordinating departments have been set up in many
organizations with the purpose of coordinating the activities of these specialized departments. Other organizations have appointed individuals for the purpose of linking two or more groups of specialists. Yet other organizations depend on cross-functional coordination teams.
Certain disagreements between the various departments cannot be avoided. Coordinating units will be effective only if they are familiar with the problems, orientations, and operating procedures of the departments they connect. The coordinating units must not be focussed on matters of immediate concern only. And members of the coordinating committees must have the authority to make and take decisions – they must resolve the conflicts themselves.
Many industries are characterized by rapid technological and market change, where innovation is the key to success. Innovative research is not sufficient by itself – what is required is effective coordination between research, sales and production so that ideas can move smoothly from the laboratory to the marketplace. What is required is a high degree of departmental specialization, and effective coordination at the same time!
These are the essential ingredients of success in organizations.