Synergy in Group

8/8/2019 Synergy in Group

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CHAPTER INCLUDES:

Definition of synergy

Pictorial representation of synergy Types of strategies

Conclusion



SYNERGY IN GROUP

Definition

There are different definitions of synergy.Some of them are:

Synergy is the difference between the combined effectand the sum of individual effects resulting from theinteraction of a group of humans, agents or forces.

"Synergy means behavior of whole systems

unpredicted by the behavior of their parts takenseparately" as given in Buckminster Fuller's book"Synergetics".



Synergy, or synergism, is the phenomenon of two ormore discrete influences or agents acting in common to

create an effect which is greater than the sum of theeffects each is able to create independently.

Synergy is the excess stemming from cooperation.



TYPES OF STRATEGIES



HUMAN SYNERGY

Human synergy relates to interacting humans.

F or example, say person A alone is too short toreach an apple on a tree and person B is too shortas well. Once person B sits on the shoulders of person A, they are more than tall enough to reachthe apple. In this example, the product of theirsynergy would be one apple.

Another case would be two politicians. If each isable to gather one million votes on their own, buttogether they were able to appeal to 2.5 millionvoters, their synergy would have produced5,00,000 more votes than had they each workedindepentently.



A song is also a good example of human synergy,

taking more than one musical part and putting them

together to create a song that has a much moredramatic effect than each of the parts when played

individually.

A third form of human synergy is when one person is

able to complete two separate tasks by doing one

action.

For example, if a person was asked by a teacher and

his boss at work to write an essay on how he could

improve his work, that would be considered synergy.Or, a more visual example of this synergy is a

drummer while he's drumming, using four separate

rhythms to create one drum beat.



Synergy usually arises when two persons with differentcomplementary skills cooperate.

The fundamental example is cooperation of men andwomen in a couple. In business, cooperation of peoplewith organizational and technical skills happens veryoften.

In general, the most common reason why peoplecooperate is it brings a synergy. On the other hand,people tend to specialize just to be able to form groupswith high synergy (see also division of labor andteamwork).

Example: Two teams in System Admin working togetherto combine technical and organizational skills in orderto better the client experience, thus creating synergy.



CORPORATE SYNERGY

Corporate synergy occurs when corporations interactcongruently.

A corporate synergy refers to a financial benefit that a

corporation expects to realize when it merges with oracquires another corporation.

This type of synergy is a nearly ubiquitous feature of acorporate acquisition and is a negotiating point between

the buyer and seller that impacts the final price bothparties agree to.



There are three distinct types of corporatesynergies:

Revenue

A revenue synergy refers to the opportunity of a combinedcorporate entity to generate more revenue than its twopredecessor stand alone companies would be able togenerate.

For example, if company A sells product X through itssales force, company B sells product Y, and company Adecides to buy company B then the new company coulduse each sales person to sell products X and Y therebyincreasing the revenue that each sales person generatesfor the company.

In media revenue, synergy is the promotion and sale of aproduct throughout the various subsidiaries of a mediaconglomerate, e.g. films, soundtracks or video games



M anagement

Synergy in terms of management and in relation to teamworking refers to the combined effort of individuals asparticipants of the team.

Positive or negative synergy can exist.

The condition that exists when the organization's partsinteract to produce a joint effect that is greater than thesum of the parts acting alone.



Cost

A cost synergy refers to the opportunity of a combinedcorporate entity to reduce or eliminate expensesassociated with running a business.

Cost synergies are realized by eliminating positions that

are viewed as duplicate within the merged entity.

Examples include the head quarters office of one of thepredecessor companies, certain executives, the humanresources department, or other employees of the

predecessor companies. This is related to the economicconcept of Economies of Scale.



CONCLUSION

Group synergy refers to the idea that twoheads (or more) are better than one.

You may have also heard the phrase, "Thewhole is greater than the sum of its parts,"which also refers to group synergy.

Put simply, groups are often capable of producing higher quality work and betterdecisions that can an individual workingalone.

Synergy in Group

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