Strategic management is a cross-functional activity. The production function for example, has relationship with other functions of a company. Explain how the production function can be integrated with other functions in company. [4marks]

Production function integration with other functions

Longer term decisions, particularly relating to design and the innovation of improved products, cannot be taken by the production department alone; its activities must be integrated with other functions in the firm.

  • Product design is co-ordinated with R&D. Production should advise R&D as to the consequences of particular designs for the manufacturing process.
  • Job design will involve consultation with human resources specialists.
  • The quantities needed to be produced will be notified by the sales department.
  • The human resources department will be involved in managing the work force.
  • The finance department might indicate the resources available for new equipment.