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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 effect and the sum of individual effects resulting from the interaction of a group of humans, agents or forces. "Synergy means behavior of whole systems unpredicted by the behavior of their parts taken separately" as given in Buckminster Fuller's book "Synergetics".
Synergy, or synergism, is the phenomenon of two or more discrete influences or agents acting in common to create an effect which is greater than the sum of the effects each is able to create independently. Synergy is the excess stemming from cooperation.
TYPES OF STRATEGIES
Human synergy relates to interacting humans. For example, say person A alone is too short to reach an apple on a tree and person B is too short as well. Once person B sits on the shoulders of person A, they are more than tall enough to reach the apple. In this example, the product of their synergy would be one apple. Another case would be two politicians. If each is able to gather one million votes on their own, but together they were able to appeal to 2.5 million voters, their synergy would have produced 5,00,000 more votes than had they each worked indepentently.
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 more dramatic 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 different complementary skills cooperate. The fundamental example is cooperation of men and women in a couple. In business, cooperation of people with organizational and technical skills happens very often. In general, the most common reason why people cooperate is it brings a synergy. On the other hand, people tend to specialize just to be able to form groups with high synergy (see also division of labor and teamwork). Example: Two teams in System Admin working together to combine technical and organizational skills in order to better the client experience, thus creating synergy.
Corporate synergy occurs when corporations interact congruently. A corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation. This type of synergy is a nearly ubiquitous feature of a corporate acquisition and is a negotiating point between the buyer and seller that impacts the final price both parties agree to.
There are three distinct types of corporate synergies:
Revenue A revenue synergy refers to the opportunity of a combined corporate entity to generate more revenue than its two predecessor stand alone companies would be able to generate. For example, if company A sells product X through its sales force, company B sells product Y, and company A decides to buy company B then the new company could use each sales person to sell products X and Y thereby increasing the revenue that each sales person generates for the company. In media revenue, synergy is the promotion and sale of a product throughout the various subsidiaries of a media conglomerate, e.g. films, soundtracks or video games
Synergy in terms of management and in relation to team working refers to the combined effort of individuals as participants of the team. Positive or negative synergy can exist. The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone.
A cost synergy refers to the opportunity of a combined corporate entity to reduce or eliminate expenses associated 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 the predecessor companies, certain executives, the human resources department, or other employees of the predecessor companies. This is related to the economic concept of Economies of Scale.
Group synergy refers to the idea that two heads (or more) are better than one. You may have also heard the phrase, "The whole 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 better decisions that can an individual working alone.