. Explain Thompson’s levels of interdependence. What is the level of interdependence among departments (finance, marketing) in a business school? What kinds of coordination mechanisms might be used to handle that interdependence?

The three level of interdependence that influences organization structure are as follows:

Pooled: This is the lowest form of interdependence. Here work is not split rigidly between the departments. Each department works collectively towards common objectives of the organization. The departments as such work independently.

Pooled interdependence is associated with divisional structure. Divisions shares financial resources from a common pool. A mediating technology would be present in the pooled interdependence firms. This mediating technology provides products or services that links with external environment.

Sequential: Here the interdependence is of the serial form wherein the output made by one department becomes input to another department. The interdependence

Greater needs for integrator or task forces required. Sequential interdependence occurs in long-linked technology. This refers the combination of successive stages of production where one input is used by the other. Extensive planning and scheduling are required.

Reciprocal: This is the highest level of interdependence. Here the output of organization a serves as the input of organization B and the output of B serve as input to B. The outputs of departments serve the other as in reciprocal fashion. This type of interdependence occurs in intensive technologies. This provides a variety of products or services to a client.

Coordination of works between all the departments is required to satisfy the customer's need. Designing engineering, manufacturing, marketing all the resources are combined to set up the product.

The Department of the Finance and Marketing in a business school works under Reciprocal Interdependence Structure.

This is because there is intensive technologies is used. Here. the output of the finance department serves as the basic input for the marketing department. And the output of the Marketing department serves as the input of the Finance department.

Total coordination. cooperation and communication are required to run the business school. Encouragement and support from the top leaders and managers to bring relational coordination.

Daily interaction and mutual adjustment is a must for the smooth running of the business school. People from different departments are needed to discuss and decide the work.

Extensive planning is required to upgrade the syllabus and techniques of teaching. Different types marketing methods through different sources and how to finance them needs to be planned.

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