Compare and contrast differentiation and integration. How are differentiation and integration related in an effective organization?
What will be an ideal response?
Differentiation means the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods. Integration means these differentiated units are put back together so that work is coordinated into an overall product. Integration is accomplished through structural mechanisms that enhance collaboration and coordination. Any job activity that links work units performs an integrative function. The more highly differentiated the firm, the greater the need for integration among its units. Lawrence and Lorsch found that highly differentiated firms were successful if they also had high levels of integration and were more likely to fail if they existed in complex environments but failed to integrate their activities adequately. However, focusing on integration may slow innovation, at least for a while.
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