Decision making on functional integration: The analytical approach

Conventional scientific practice normally emphasizes benefits of functional integration but pays little attention to potential problems that may arise when organizations try to integrate their functions. The paper suggests that managers, before doing any steps towards functional integration, must develop specific criteria and indices to thoroughly estimate the current environmental situation and the necessity for integration, as well as possible outcomes of that integration. The analytical technique that may help managers thoroughly evaluate prerequisites and consequences of functional integration for better decision making is presented in the article.