"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?

Option 1 -> Specialisation refers to dividing work into specialized tasks, but this doesn't directly explain why departments must depend on each other for information.

Option 2 -> Growth in size relates to organizational expansion creating coordination needs, but the statement emphasizes interdependence between functions rather than size.

Option 3 -> Responsibility of manager describes whose duty coordination is, not why coordination is important due to departmental interdependence.

Option 4 -> Functional differentiation occurs when organizations divide work into different departments (marketing, finance, production, HR, etc.), creating interdependence where each department relies on others for information and resources to function effectively.

Hence, Option 4: Functional differentiation -> When an organization has different functional departments, each performing specialized functions, they become interdependent and must coordinate by sharing information and resources to achieve organizational goals. This directly matches the statement about departments depending on each other for information. -> correct