What are the types of interdependence?

Technological interdependence is the degree to which different parts of the organization must exchange information and materials in order to perform their required activities. There are three major types of technological interdependence:

Pooled interdependenceThe type that involves the least interdependence is known as a pooled interdependence, in which units operate independently but their individual efforts are important to the success of the organization as whole. For example, if the local branch of the bank performs poorly and loses customers, its problems will have negative effect on the health of the bank as a whole.Sequential interdependenceWith sequential interdependence, one unit must complete its work before the next unit in the sequence can begin work. For example, a strike over a local issue at one plant of General Motors frequently causes workers at other plants to be laid off temporarily. Reciprocal interdependenceThe most complex situation is reciprocal interdependence, in which one unit's outputs become inputs to other unit and vice versa. When an airplane lands, the flight crew turns the plane over to the maintenance crew. After refuelling the plane, and performing other necessary activities, the maintenance crew releases the plane back to the flight crew so that the plane can continue its journey. Reciprocal interdependence is likely to require greater efforts at horizontal coordination than do the other two types of technological interdependence.

Thus managers need to give some thought to technological interdependence, when developing organization structure.

Have you noticed how this pandemic has created a greater need for independence and interdependence? It seems to me that this is one of the great paradoxes of our time: In order to overcome this crisis, we need to actively work independently, and with each other. This takes great planning, communication, and coordination. It requires the right type of interdependence.

As I mentioned in my last post, here, organizational theorist James D. Thompson identified three types of interdependence: pooled, sequential, and reciprocal. Most teams shift between the three, which when not fully recognized can cause frustration, inefficiency, and lack of productivity. Great team members understand the differences, the expectations, and what is needed for greatest satisfaction.

For example, let’s say your business is to make widgets. You offer standard widgets, as well as customized widgets. Your business is made up of production teams to reach standard widget goals and deliver quality custom widgets.

• Level 1 interdependence pools standardized independent actions into a team effort. Each person creates a standard widget. This is referred to as pooled interdependence.
• Level 2 interdependence requires a known sequence of standardized and modified actions into a team effort. Each person completes a portion of the process to produce a widget; an assembly line. This is referred to as sequential interdependence.
• Level 3 interdependence is based on known and unknown sequences of known and unknown standardized and modified actions into a team effort. This is referred to as reciprocal interdependence.

The level of interdependence is also referred to as the degree of interdependence, and determines the type of management, or amount of coordination, needed.

The Best Management for Your Type of Interdependence

Higher degrees of interdependence reflect greater complexity, and require different types, or degrees, of management:

• Level 1 management: When all team members are trained on and adhere to standardized processes and actions, standardization management, including reporting and communications, is efficient.
• Level 2 management: Planning management is required for sequential interdependence. This allows managers to coordinate goals with the actions needed, including process analysis, for successful outcome. Team members may be asked to provide additional information and shift actions as needed.
• Level 3 management: When any team member introduces new information that affects the reciprocal independence, increased communication, changes, and coordination are required. This calls for mutual adjustment management.

Great leaders help their team members understand and move through different levels of interdependence. They shift their management and coordination relative to the degree of complexity for improved productivity and efficiency.

If your team members are complaining about the amount of meetings (or a lack of information), examine your level of management. It may require adjustment.

What do you think? Which type of interdependence is best for your team? How do you shift between the levels of management for each type? I’d love to hear from you. I can be reached here, on LinkedIn, or give me a call: 561-582-6060.

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