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Synergy and Dysergy

Synergy refers to two or more elements achieving greater value by working together than individually. There are two types of synergy: positive synergy, where joint actions produce greater results; and negative synergy or dysergy, where the combined effect is less than the sum of individual parts. An organization can leverage various areas for synergistic advantage, including marketing, production, finance, research and development, and general management. Gap analysis helps identify what steps are needed to close any gaps between a business's current and desired future states in areas like profits, sales, or risk.

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Titus Clement
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2K views

Synergy and Dysergy

Synergy refers to two or more elements achieving greater value by working together than individually. There are two types of synergy: positive synergy, where joint actions produce greater results; and negative synergy or dysergy, where the combined effect is less than the sum of individual parts. An organization can leverage various areas for synergistic advantage, including marketing, production, finance, research and development, and general management. Gap analysis helps identify what steps are needed to close any gaps between a business's current and desired future states in areas like profits, sales, or risk.

Uploaded by

Titus Clement
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Synergy and Dysergy

The work synergy is derived from Greek word “syergos” which implies
working together. Synergy means the ability of two or more units to generate greater
value by working together than they do by working individually. In other word
synergy is the idea of putting two or more elements together to achieve a sum total
greater than the sum total of individual elements separately. This greater sum total is
due to synergistic effect and is called 2+2 = 5 effect. In strategic planning and
decision making, it is evident that the combined effect of different functional forces is
more than the sum of this individual effect. The degree of synergistic effects in an
organization in totality leads to development of organizational competencies.

Types of synergy

From the operational point of view, synergy is of two types:

a. Positive Synergy: Positive synergy arises when two actions performed jointly
produce a greater result than they would if performed independently.
b. Negative Synergy (Dysergy): Synergic effect does not emerge automatically
by putting different elements together than they do by working independeltly.
Dysergy results in 2+2 = 3 effect.

The area of synergic advantage of an organization depends on its strengths and


weaknesses. In an organization synergic advantage takes place in number of areas.
This will happen only through proper analysis of organisation’s strengths and taking
matching strategic action inorder to leverage the strengths. The various areas of
synergistic advantage are:

1. Marketing 2. Production

3. Finance 4. Research and Development, and

5. General Management.

GAP Analysis
Gap analysis helps business to determine what steps are needed to be taken in
order to move from current state to its desired future state. It is a useful method to
describe what action should be taken to remove any potential profit or sales gap or any
form of risk gap. It identifies the gap between optimized allocation and integration of
resources, and the current allocation level.

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