Introduction
At the fourth biennial Mercy Corps leadership conference in November 2006 executive leadership described the well-known, internal complications at Mercy Corps as a large organization ($194 million budget in 2006) that “has to focus on two core areas: international relief and development” (Grossman & King, 2008). The status of the organization was examined in detail by the Harvard Business School case study and a number of problems were revealed. This analysis is based on the information provided by the case study and addresses four issues. The first section discusses three forms of differentiation and how they are relevant to Mercy Corps. The second section addresses the five different forms of integration in …show more content…
Horizontal differentiation is clearly evident when the four program directors formerly supervising 40 country directors were replaced by six regional program directors. Effectively, a new department was added and the reporting structure was changed so that country directors were now reporting to their respective regional director who reported to the Portland, OR HQ and not the program directors in Portland, OR. Because the reporting structure was changed the country directors now had one more step before reaching the HQ. On the other hand country directors now had a faster response rate for questions that were not …show more content…
With 3,000 team members spread out across the world the organization had a strategy that kept the teams abroad aligned with the mission. All teams, despite their geographical locations, align their country goals to their greater vision and mission of Mercy Corps. Although country directors get great autonomy in how they run their program and where their funding comes from they still are working towards a shared goal.
Changes in Integration Many of the forms of integration were significant in the Mercy Corps case. As defined by Hodge & Anthony in the handout provided in class the Five Forms of Integration are defined as:
1. Formalization – utilization of formal rules, policies and procedures.
2. Centralization of decision-making or authority – refers to the place in the hierarchy where decisions are made.
3. Span of Control – refers to the number of immediate subordinate positions a managerial position controls or coordinates.
4. Standardization – integration can be achieved through a process, input (human resources and materials), and output standardization.
5. Nonstructural means for integration – refers to the coordination mechanisms including liaison roles, teams, culture, information systems, and communication