Reciprocal interdependence:

When units provide each other with activity inputs to co-ordinate, mutual adjustment is required. Mutual adjustment is the process of direct communication and joint decision making among units involved in the task activities.

For example a legal department in a savings and loan business may review applications borrowers that were submitted to the loan department. After an application form is reviewed and changed it is sent back to the loan department so that the request or denial of the loan can be processed. The output of the loan department becomes the input for the legal department and the output of the legal department becomes an input for the loan department. Thus there is a two-way flow between departments.