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]
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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