Levels of Organisational Development – Level 3

Level 3 of the 6 levels of organisational development is the integration stage of organisational development

This post continues from:

The Levels of Organisational Development- Level 1 or the Formation Stage, and

Levels of Organisational Development – Level 2 – The formalisation stage of organisational development

In this post I look at Level 3 of the 6 stages of organisational development – the integration stage of development:

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Level 3: Integration stage

The distinctive features of the integration level of organisational development is characterised by: –

a) Various aspects of activity start to become integrated, such as

a. quality management

b. environmental management

c. integration of logistics functions

which leads to greater centralised control over these aspects of activity.

b) Expenses for the centralised management of key aspects of activity increase, influencing the sustainable competitiveness of the organisation.

In effect, as the organisation starts to integrate the functions and activities, the internal costs of managing the organisation start to increase considerably. This has an immediate impact on its competitiveness and profitability until the integrations start to allow for economies of scale.

In my next post I will look at level – 4 The Expansion stage of development…