As the decision making authority is reserved by the upper levels of the organization, it becomes more centralized. The process of integration requires that a delicate balance between centralization and decentralization be created. The integration of differentiated groups requires the definition of the appropriate type of interdependence among the differentiated organizational units. Pooled interdependence is the simple pooling of the outputs of each work group into the firm's output. None of the output of one group is dependent on the output of the others.
Sequential interdependence occurs when the output of one group acts as the input of the next.
Assembly line operations often illustrate this type of interdependence. Finally, reciprocal interdependence occurs when the output of each group is the input of the others in a nonlinear fashion. The structural arrangements necessary to support pooled interdependence are much simpler than those required for sequential and reciprocal interdependence. Managers are able to define line and staff relationships in authority terms. The line responsibilities account for the integration of separate effort.