If a firm is co-coordinated and everyone possesses similar attitudes then employee motivation is likely to rise. If people are happy in their working environment, then their productivity is likely to rise. This in turn leads to increased profitability for the organisation. From looking at Lovelock’s article the issues already discussed relate to this because he is putting forward the view that managers should aim to avoid ‘functional silos’ which is where each function of an organisation exists in an isolation from one other and they don’t work together.
However Lovelock identifies the three most important functions of a business to be Marketing, Operations and HR whilst these are critical aspects others are equally as important, Knorr takes this view by stating ‘competitive advantage is achieved when all functional players work together on a horizontal basis and when management understands the linkages and interaction of all resources (human, physical, financial and information – at all levels’). From looking at the (Bags of trouble article), it seems evident that the problematic area of concern lies within the human resource department.
Looking at HR, Bratton, states ‘people’s knowledge, expertise and social relationships have the potential to provide no-substitution capabilities that serve as a competitive advantage. ‘ (2003: 369) resources cannot be easily copied are evidently going to be valuable and so any attempts by other firms of things such as resource mobilization (such as employees leaving) or resource paralysis (competitors trying to decrease the value-adding potential of a firms resources).
(Looy, 2003) A possible solution for departments in need of HR assistance could be for a senior manager to spend time within for example operations department and then get an accurate understanding of what the problem is. This technique is transfers and cross training, this could also be used for the retail hotdog outlets. (Appendix 2).
David Sanger the Rollover Hotdog tycoon, made some bad choices focusing all his time increasing sales and reaching as many customers as possible without taking time to focus on the operations and HRM sectors of the business. He was doing well in Wholesaling and without preparation opened outlets. These outlets were unsuccessful due to staff irregularities and theft, to lesser time was spent initiating clear framework within the organising. This is a classic example of marketing mytopia.
The use of technology can improve a businesses reputation as well as its profitability. Technology such as the internet would be particularly useful to a company such as Next PLC retail department who have Next online available as it is convenient for the customers and gives them more options. (Appendix 1). Lovelock states that if employees support organizational goals and recognize the importance the importance of customer satisfaction then marketing and operations would be easier to manage.
This is because in service firms employees are vital to their success due t the amount of communication with customers that is involved. Despite their being a need for integration there is likely to be a certain amount of conflicting ideas within the functions. However in accordance to Lovelock, if they work together, it can be resolved. In conclusion, there are many reasons why integration of resources is so important, the most important benefit being to ensure the company gains a constant competitive advantage; this is supported by Lovelock’s article.