2.2 Co-ordination

　　It is vital that effective co-ordination is achieved between different departments and functions.

　　The main way this is achieved is through the budget-setting process, e.g. to ensure that production make enough products (subject to stock policies) to meet predicted sales figures from marketing. Both the production and marketing budgets will be based on the same set of assumptions.

　　Other mechanisms for co-ordination include the following:

　　§ regular planning meetings between the managers

　　§ effective and regular communication between departments to confirm deadlines, target activity levels etc.

　　§ clear, well-documented reporting lines

　　§ supervision.

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　　Co-ordination is achieved in one of or more of the following ways; the relative complexity of the work affects the method chosen:

　　§ Standardised work process – the work is specified, and everybody works in the same say.

　　§ Standardised outputs – through such things as product or service specifications. Whilst the results are standardised, the means are not.

　　§ Standardised skills and knowledge – even though each job is performed independently. This is an important co-ordinating mechanism in professional activities and specifies the kind of training needed to perform the work.

　　§ Direct supervision – exists throughout the hierarchy where individuals issue instructions and monitor performance. One person has a specific co-ordinating role.

　　§ Mutual adjustment – co-ordination results from internal communication and through informal contact between the people performing their organizational roles. This exists in simple structures where people work closely together. It also applies to some complex tasks, e.g. in a research project if the outcome is uncertain, colleagues will adjust their activities in the light of new findings.

　　Test your understanding 8

　　An over-keen sales person promises a new product to a major client before production anticipates manufacturing it.

　　What problems could this cause and how could it have been avoided?

　　3 Strategic, tactical and operational planning levels in the organisation