Integrated Management Concept

The Integrated Management Concept, or IMC is an approach to structure management challenges by applying a "system-theoretical perspective that sees organisations as complex systems consisting of sub-systems, interrelations, and functions".^[1] The most characteristic aspect of the IMC is its distinction between three particular management dimensions: normative, strategic, and operational management, which are held together by different integration mechanisms. ^[2][3] The normative management dimension determines the general aim of the organization, the strategic dimension directs the plans, basic structures, systems, and the problem-solving behaviour of the staff for achieving it, and the operative level translates the normative missions and strategic programs into day-to-day organizational processes.

The IMC was developed by Knut Bleicher and his colleagues originally as an element of the St. Gallen Management Model, introduced in the 1970s by Hans Ulrich and Walter Krieg at the Swiss University of St. Gallen.^[4][5][6] Thereafter, the IMC has been revised several times (e.g. with respect to its application within SMEs sectors ^[7][8]) and further developed by research institutions^[9] and management scholars, such as Johannes Rüegg-Stürm. ^[10][11]

Dimensions of management

Normative management

The normative management dimension deals with principles, norms, and strategies which are aimed to ensure the surviving capabilities of a company through the preservation of its identity. Bleicher states that “because of its constitutive role, normative management functions as the basis for all activities of management”.^[2] Through vision, mission, and purpose statements, normative management codifies the norms, principles, and strategies that fulfill the company's general aim.^[1]

Strategic management

Strategic management focuses on achieving a company's competitive advantage. It utilizes the organizational experience in relation to its technologies, social structures, and processes against competitors in the market. While normative management functions as a foundation for activities, it is the task of strategic management to provide orientation for these activities.^[2]

Operational management

The operational management dimension is characterized by the processes and tasks that apply on practice the realization of organizational norms and strategies. It aims at optimizing process efficiency and effective social cooperation to enhance performance, both within the organisation and with external stakeholders. Thus, the operational management level facilitates the development of processes, products, and services.

Integration mechanisms

The IMC identifies three integration mechanisms^[2] that span the management dimensions and ensure the alignment between them. These integration mechanisms are defined as meta-integration, vertical integration, and horizontal integration. Meta-integration is based on the management and business philosophy which defines the company's consideration of and relation to its stakeholders’ values. Vertical integration is achieved throughout the three management dimensions by means of structures, activities, and behavior. Structures describe the translation of corporate governance into effective management and efficient processes. Activities refer to the development and application of corporate policies, strategic programmes, and operational tasks (e.g. marketing activities like acquiring customers or performing customer service). Behavior relates to defining roles that ensure that the company's culture and normative values are put into practice. Horizontal integration is about aligning the structures, activities, and behavior throughout the distinct management dimensions.

Application

The IMC has been adapted in various contexts, such as foresight frameworks^[12][13] or cybernetic theories for organisational intelligence.^[14] More recently, it has also been used as a foundation for an Integrated Business Model Framework^[15] by Oliver D. Doleski that identifies normative, strategic, and operational business model elements. Breuer & Lüdeke-Freund^[1] adopted the basic distinction between management levels and integration mechanisms to develop a framework for values-based innovation management stressing the impact of normative orientations for research, design and management of corporate innovation. The IMC is closely related to systems approaches such as Stafford Beer's Viable Systems Model^[16] due to its systemic and cybernetic character.

References

1. Breuer, Henning; Lüdeke-Freund, Florian (2017), "Values-based innovation", Values-Based Innovation Management, Macmillan Education UK, pp. 54–85, doi:10.1057/978-1-137-51662-6_3, ISBN 9781137516619
2. Bleicher, Knut (October 1994). "Integrative management in a time of transformation". Long Range Planning. 27 (5): 136–144. doi:10.1016/0024-6301(94)90234-8. ISSN 0024-6301.
3. Bleicher, Knut (1993), "Dynamisch-integriertes Management", Strukturwandel in Management und Organisation, Gabler Verlag, pp. 29–53, doi:10.1007/978-3-322-87171-8_2, ISBN 9783322871725
4. Knut., Bleicher (1994). Normatives Management : Politik, Verfassung und Philosophie des Unternehmens. Frankfurt/Main: Campus. ISBN 3593350696. OCLC 32892008.
5. Knut., Bleicher (2005). Management im Wandel. Künzelsau: Swiridoff. ISBN 3899290526. OCLC 181442248.
6. Ulrich, H.; Krieg, W. (1974). St. Galler Management-Modell (3rd ed.). Bern: Haupt.
7. Buła, P.; Fudaliński, J.; Gorzelany-Dziadkowiec, M. (2013). "The Concept of Integrated Management within small and medium-sized enterprises sectors". Management Science in Transition Period in South Africa and Poland: 313–343.
8. Gorzelany-Dziadkowiec, M. (2013). "Integrated management in small enterprises" (PDF). Review of General Management. 17: 19–48.
9. J., Belak; Duh, M. (September 2004). "MER model of integral management: concept and basic features" (PDF). In Proceedings of Budapest Tech International Jubilee Conference on Science in Engineering, Economics and Education. 4: 257–271.
10. Rüegg-Stürm, Johannes (2005). The New St. Gallen Management Model (PDF). doi:10.1057/9780230505162. ISBN 978-1-349-51852-4.
11. Rüegg-Stürm, J. & Grand, S. (2014) Das St. Galler Management-Modell. 4. Generation – Einführung [Introduction to the fourth generation St. Gallen Management Model]. Bern: Haupt.
12. Alsan, Alper; Atilla Oner, M. (April 2003). "An integrated view of foresight: integrated foresight management model". Foresight. 5 (2): 33–45. CiteSeerX 10.1.1.509.3840. doi:10.1108/14636680310476258. ISSN 1463-6689.
13. Saritas, Ozcan; Oner, M.Atilla (January 2004). "Systemic analysis of UK foresight results" (PDF). Technological Forecasting and Social Change. 71 (1–2): 27–65. doi:10.1016/s0040-1625(03)00067-2. ISSN 0040-1625.^{[dead link]}
14. Schwaninger, Markus (March 2001). "Intelligent organizations: an integrative framework" (PDF). Systems Research and Behavioral Science. 18 (2): 137–158. doi:10.1002/sres.408. ISSN 1092-7026.
15. Doleski, Oliver D. (2015), "Conceptual Framework and Understanding Business Models", Integrated Business Model, essentials, Springer Fachmedien Wiesbaden, pp. 3–6, doi:10.1007/978-3-658-09698-4_2, ISBN 9783658096977
16. Beer, Stafford (January 1984). "The Viable System Model: Its Provenance, Development, Methodology and Pathology". Journal of the Operational Research Society. 35 (1): 7–25. doi:10.1057/jors.1984.2. ISSN 0160-5682. S2CID 2830103.