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Integrated management systems in enterprises

The quality of management in a modern organization is determined by the ability to view the organization and the key processes occurring within it in an integral manner. The quality of marketing, logistics, finance, production, quality, human resources management, etc., is actually defined by the quality of mutual integration – holistic management [Krupa 2003].
In a holistic approach, it is easy to notice a similarity to the most general, universal definition of an organization, which states that an organization is a system whose order consists primarily of the fact that its functionally differentiated parts interact with each other, contributing to the success of the whole [Johnson et al. 1964].

According to Kast and Rosenzweig [1972], adapting general systems theory to the needs of enterprises, modern management functions should focus on issues such as:

  • maintaining a comprehensive view of the organization as a system and its current situation,
  • formulating the goals and strategy of the organization as a whole,
  • designing an information and decision-making system,
  • shaping the human management system,
  • continuous improvement of the organization’s functioning.

Phenomena occurring in economic practice, such as increased competition, growing strategic and operational linkages, increasing intra-organizational interactions, the growing role of the environment, or the increasing number of formal regulations, force the integration of management systems in enterprises. Integrated Management Systems (IMS) react more effectively to risks associated with various types of threats – they identify threats and prevent them faster.

The purpose of this article is to provide knowledge about integrated management systems, which are increasingly being implemented in Polish enterprises. The essence of management system integration, selected examples of IMS, and the benefits of their introduction are presented. The work is of a review and theoretical nature. A heuristic approach was used in the considerations regarding the issues of integrated management systems in enterprises.

The essence of management system integration in an enterprise
The progress of science and technology, the increase in the complexity of systems (economic organizations, technical objects, etc.), as well as the critical analysis of projects based on an overly analytical approach led in the mid-20th century to a change in the prevailing reductionist paradigm to a systemic (holistic) one. The holistic approach (providing scientific foundations, methods, and technologies) became a new tool for solving complex problems previously considered unsolvable.
Using one of the axioms of the systems approach, which states that strategic problem-solving cannot be sought in isolation, attention in enterprise management was drawn to the problem of integrating management systems. System integration (Figure 1) is the combining of mutually interacting sets of elements of individual systems into a coherent whole – the structure of an integrated system – which transforms signals and information from the environment into executive actions within the individual elements forming this structure [Szydłowska – Bojda 2011].

In short, therefore, an integrated management system is a system in which at least 2 subsystems function coherently, and the primary goal of building an IMS is the pursuit of improving all processes and areas. The need to create integrated management systems stems from the organization’s desire for increasingly effective enterprise management and the increasingly full realization of social needs.
The entry into force of the ISO 9001 standard, which applied a process approach to quality management, had a major impact on the integration of management systems. At the same time, it was built in such a way as to ensure high compatibility and enable integration with other ISO systems (for example, environmental management or occupational health and safety management). The integration of the aforementioned management systems is logical and justified by a similar structure of requirements and a common philosophy based on the concept of continuous improvement (Deming cycle) in connection with a preventive and process approach.

Due to the methods of integration, there are 3 fundamental ways of introducing integrated management systems:

  • building and implementing one system, for example, a quality management system, and then subsequent ones and their integration with the previous ones
  • parallel building of separate management systems with their integration in the future – used when a company wants to consciously separate management systems during the implementation process for various reasons (high complexity of the process, organizational changes, etc.). Integration is therefore “deferred” in time, which makes it possible to relatively easily control independent systems that “break in” with each other
  • building an integrated system from the beginning.

In practice, an integrated enterprise management system is most often implemented “step by step,” i.e., in stages, and covers subsequent management subsystems, for example, technology management, human resources, finance, etc. The successive introduction of subsequent subsystems into the IMS allows for time to define dependencies in accordance with practical requirements, reduce costs associated with implementation and personnel training (adapting users to new working conditions), and finally, finance the entire venture in a way that does not burden the company’s budget beyond its capabilities. Implementation should have clearly defined phases, which allows for inter-stage assessments and ongoing corrections. When creating an IMS, one must create rational integration bonds. Otherwise, one can lead to the opposite process – “disintegration.” It should also be remembered that due to differences in goals, there is no such thing as a completely integrated management system.

The article comes from the journal “Logistyka” 4/2011.

L2011-4s13.pdf