"All departments and individuals are interdependent and they have to depend on each other for information to perform their activities".

Identify the importance of coordination stated in the above lines?

Functional differentiation

The correct answer is option 4- Functional differentiation.

Functional differentiation is the importance of coordination stated in the given lines.

Functional differentiation: Functions of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working. All departments and individuals are interdependent and they have to depend on each other for information to perform their activities. The activity of each department needs to be focused on attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.