Integrated Management Systems

199 Pages·2015·2.038 MB·English

by  Marek Bugdol, Piotr Jedynak (auth.)

Marek Bugdol · Piotr Jedynak
Integrated
Management
Systems
Integrated Management Systems
Marek Bugdol Piotr Jedynak
(cid:129)
Integrated Management
Systems
123
MarekBugdol
Piotr Jedynak
Faculty ofManagement and Social
Communication
Jagiellonian University
Kraków
Poland
ISBN 978-3-319-10027-2 ISBN 978-3-319-10028-9 (eBook)
DOI 10.1007/978-3-319-10028-9
LibraryofCongressControlNumber:2014946754
SpringerChamHeidelbergNewYorkDordrechtLondon
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Contents
1 Management and Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Integration of Management Process . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 The Management Process in the Holistic
Management System . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.2 The Management Process and Its Integrative
Character . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1.3 The Integrative Role of the Management Function. . . . . . 3
1.1.4 Selected Integrative Functions of an Organization . . . . . . 11
1.2 Types of Integration in Management . . . . . . . . . . . . . . . . . . . . 14
1.3 Integration in Organizational Structures. . . . . . . . . . . . . . . . . . . 21
1.3.1 Qualities of Integrative Organizational Structures. . . . . . . 21
1.3.2 Selected Problems of Integration in Organizational
Structures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
1.4 Synergy Effect in Management . . . . . . . . . . . . . . . . . . . . . . . . 26
1.4.1 Notion of Synergy. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
1.4.2 Forms of Synergy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
1.4.3 Integration Versus Synergy. . . . . . . . . . . . . . . . . . . . . . 30
1.4.4 Difficulties in Achieving Synergy . . . . . . . . . . . . . . . . . 31
1.4.5 Conditions for Achieving Synergy. . . . . . . . . . . . . . . . . 32
1.5 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2 The Main Conditions for Integration Success . . . . . . . . . . . . . . . . 41
2.1 Organizational Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.1.1 Definitions of Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.1.2 Types of Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.1.3 Dimensions of Trust . . . . . . . . . . . . . . . . . . . . . . . . . . 44
2.1.4 Significance of Trust. . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.1.5 The Role of Trust in Integration . . . . . . . . . . . . . . . . . . 49
v
vi Contents
2.2 Cooperation of People and Organizations . . . . . . . . . . . . . . . . . 50
2.2.1 Fundamental Aspects and Dilemmas of Cooperation
Within an Organization . . . . . . . . . . . . . . . . . . . . . . . . 50
2.2.2 Conditions of Cooperation in an Organization. . . . . . . . . 51
2.2.3 Cooperation Among Organizations . . . . . . . . . . . . . . . . 53
2.3 Organizational Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2.3.1 The Notion of Organizational Culture . . . . . . . . . . . . . . 61
2.3.2 The Strength of Organizational Culture . . . . . . . . . . . . . 62
2.3.3 Culture Versus Integration . . . . . . . . . . . . . . . . . . . . . . 63
2.3.4 Integrative Culture. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
2.3.5 The Cultural Integration of an Individual
with an Organization. . . . . . . . . . . . . . . . . . . . . . . . . . 64
2.3.6 Problems with Integration. . . . . . . . . . . . . . . . . . . . . . . 66
2.3.7 An Organization’s Cultural Integration. . . . . . . . . . . . . . 67
2.4 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
2.5 Management by Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . 70
2.5.1 Principles of Management by Objectives . . . . . . . . . . . . 70
2.5.2 The Role of Stakeholders in Management
by Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
2.5.3 Management by Objectives and the Balanced
Scorecard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
3 Integration Approach in Modern Management Concepts. . . . . . . . 83
3.1 Integration in the System Approach . . . . . . . . . . . . . . . . . . . . . 83
3.1.1 The Concept of System . . . . . . . . . . . . . . . . . . . . . . . . 84
3.1.2 The Essence of a Social System . . . . . . . . . . . . . . . . . . 85
3.1.3 A Socio-Technical System . . . . . . . . . . . . . . . . . . . . . . 87
3.1.4 An Example of Integration Between Two
Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . 88
3.2 Integration in Supply Chain Management . . . . . . . . . . . . . . . . . 93
3.2.1 Supply Chain and Supply Chain Management. . . . . . . . . 93
3.2.2 Supply Chain Integration . . . . . . . . . . . . . . . . . . . . . . . 95
3.3 Integration in Virtual Organizations . . . . . . . . . . . . . . . . . . . . . 101
3.3.1 The Concept of Virtual Organization. . . . . . . . . . . . . . . 101
3.3.2 The Importance of Integration and Its Conditions . . . . . . 103
3.3.3 Integration Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
3.3.4 Integration Possibilities . . . . . . . . . . . . . . . . . . . . . . . . 108
3.4 Integration in Process Management . . . . . . . . . . . . . . . . . . . . . 110
3.4.1 Process Management and Integration. . . . . . . . . . . . . . . 110
3.4.2 The Process Approach as a Principle of Quality
Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Contents vii
3.5 Integration in Total Quality Management . . . . . . . . . . . . . . . . . 115
3.5.1 Selected Integration Problems. . . . . . . . . . . . . . . . . . . . 116
3.5.2 The Integration of TQM with Other
Management Concepts. . . . . . . . . . . . . . . . . . . . . . . . . 117
3.5.3 The Integrating Role of Excellence Models . . . . . . . . . . 123
3.6 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
4 Integration of Standardized Management Systems. . . . . . . . . . . . . 129
4.1 Standards of Management Systems. . . . . . . . . . . . . . . . . . . . . . 129
4.1.1 Classification of Standards . . . . . . . . . . . . . . . . . . . . . . 129
4.1.2 The ISO 9001 Standard . . . . . . . . . . . . . . . . . . . . . . . . 130
4.1.3 The ISO 14001 Standard . . . . . . . . . . . . . . . . . . . . . . . 135
4.1.4 The ISO 27001 Standard . . . . . . . . . . . . . . . . . . . . . . . 139
4.1.5 The OHSAS 18001 Standard . . . . . . . . . . . . . . . . . . . . 141
4.1.6 The ISO 22000 Standard . . . . . . . . . . . . . . . . . . . . . . . 145
4.2 Concept and Methodology of Integration . . . . . . . . . . . . . . . . . 148
4.3 Integration in the Implementation Process. . . . . . . . . . . . . . . . . 154
4.4 Consequences of Integration . . . . . . . . . . . . . . . . . . . . . . . . . . 155
4.5 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
5 Integration in Different Organizational Situations . . . . . . . . . . . . . 161
5.1 Integration During Crisis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
5.1.1 Crisis and Its Types. . . . . . . . . . . . . . . . . . . . . . . . . . . 163
5.1.2 Integration Versus Crisis. Conditions of Integration. . . . . 165
5.1.3 Crisis Management Based on the Systemic Theory . . . . . 171
5.2 Integration in Organizational Change . . . . . . . . . . . . . . . . . . . . 172
5.2.1 Types of Change and Integration Processes . . . . . . . . . . 172
5.2.2 Conditions for Effective Change Management. . . . . . . . . 173
5.2.3 Integration and Changes. . . . . . . . . . . . . . . . . . . . . . . . 176
5.2.4 Technological Changes . . . . . . . . . . . . . . . . . . . . . . . . 179
5.3 Integration in Social Games. . . . . . . . . . . . . . . . . . . . . . . . . . . 181
5.3.1 Social Games and Their Facilitating Factors. . . . . . . . . . 181
5.3.2 Types of Games: Selected Examples . . . . . . . . . . . . . . . 184
5.3.3 The Player’s Integrating Role. . . . . . . . . . . . . . . . . . . . 187
5.4 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Introduction
“Integrated Management Systems” consists of five chapters. The first chapter
presentstypesofintegration,theintegrationofmanagementprocesses,integration
inorganizationalstructures,andthesynergyeffect.Thesecondchapterfocuseson
conditions necessary for successful integration. The authors emphasize the
significance of trust in integration processes and the dominant influence of an
organizational culture on processes of integration and disintegration, as well as
problemsrelatedtocooperationamongemployees.Inthethirdchapter,theauthors
discuss integration within the system approach and types of integration which
occuramongstvirtualorganizationsandsupplychains.Indiscussingintegration,it
is impossible to omit the holistic concept of total quality management. The
applicationofTQMinfluencesvarioustypesofintegration.However,theoptimum
level of organizational integration is possible only when the TQM concept is
preciselydefined,itskeyelementsareidentified,anditsprinciplesarerecognized
and implemented. The fourth chapter is devoted to a discussion concerning the
integration of standardized management systems. For a considerable period of
time, attempts have been made to combine various standardized management
systems—mainly those related to quality, environment, and occupational safety.
At present, in view of the development of various management standards, the
problem of integrating different systems is of increasing relevance, because in
practice, lack of such integration results in wastage, and unnecessary costs.
Therefore,itisimportanttobeawareofappropriatemethodsfortheintegrationof
standardizedsystemsandalsoofhowtoreduceworkloadanddocumentation.The
fifth chapter identifies new directions in research with regard to the issues of
integration.Itpresentsjustafewproposalsoutofthemanyoptionsavailablewith
regard to integration in crisis, organizational change, and social games.
Thebookisaddressedtoallthosewhowishtoimprovemanagementefficiency.
It determines the importance for an organization of comprehensive evaluation, of
establishingplansforimprovement,andofco-operationalongthesupplychain.It
presents practical possibilities for the use of different types of integration. The
book addresses the most recent changes and latest trends in integration
management from both a theoretical and a practical perspective.
ix
Chapter 1
Management and Integration
In this chapter, the authors will discuss types of integration and selected examples
of their development, the significance of integration in organizational structures as
well as the role of the structures themselves in ensuring a required level of inte-
grationandasynergyeffect.Thediscussionwillincludethenotionofsynergyand
itsbasicforms,difficultiesinachievingasynergyeffectandbasicconditionsforits
occurrence.
1.1 Integration of Management Process
1.1.1 The Management Process in the Holistic Management
System
The management process should be understood as all consecutive managerial
activities which can be grouped according to the so-called management functions.
From the perspective of a system, the management process constitutes an element
of the organizational management system. Besides the management process, the
organizational management system comprises also, among other things, of orga-
nizational structure and methods of management.
System-based management stresses the holistic approach to the performance of
managerial functions (Hoare 1995). Such management takes place within the
conventional limits of an organization, but simultaneously interacts with the
environment.Itisworthnotingthat,accordingtooneofthestandardclassifications
(Christopher 2007), systems can be divided into
(cid:129) deterministic or probabilistic ones and
(cid:129) simple, complex or very complex.
Thereisnodoubtthatcontemporaryorganizationalmanagementsystemsarenot
usually deterministic (because of the increasing uncertainty of business activities)
andareverycomplex.Thecomplexityofsuchsystemsresults,amongotherthings,
from their internal complexity (e.g. the complexity and variety of conducted
©SpringerInternationalPublishingSwitzerland2015 1
M.BugdolandP.Jedynak,IntegratedManagementSystems,
DOI10.1007/978-3-319-10028-9_1
2 1 ManagementandIntegration
operations, difficulties arising from the impact of people’s actions) as well as
external complexity (interactions between an organization and the components of
its environment).
Therefore,everydaymanagerial work,i.e.themanagementprocess,iscurrently
performed in conditions of considerable and increasing complexity. One of the
tasks of the systemic approach to management, including integration in the man-
agement process, is to reduce this complexity.
1.1.2 The Management Process and Its Integrative Character
Both scholarly literature and the practical activities of organizations, indicate two
dominant approaches to the identification and description of the management
process. One of these was developed by H. Fayol, and the other by E.W. Deming.
H. Fayol identified five managerial functions constituting the management
process. These are (Reid 1995): organization, planning, coordination, control, and
command. Formulated at the beginning of the twentieth century, Fayol’s proposal
hassurvivedtothisdayasapopularandsimultaneouslypracticalillustrationofthe
basis of managers’ work. In accordance with the spirit of Fayol’s theory, the key
managerial functions include, in this order: planning, organization, command,
control and coordination. Of course, this basic set of the managerial functions can
be combined with other elements such as knowledge management, information
management, decision making, etc.
With respect to the aforementioned formula for the understanding of the man-
agementprocess,wecantalkofitsendogenicallyintegrativecharacter.InFayole’s
approach (Reid 1995), several factors result in the integrative character of the
management process. These are as follows (Fig. 1.1):
Function a Function b Function c
Sequence
Feedback
Integrative functions
Fig.1.1 Thefactorsofintegrationinthemanagementprocess