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Co-ordination can be classified into external and internal co-ordination. Internal co-ordination can be further classified into vertical, horizontal and diagonal co-ordination. 

External Co-Ordination 

  •  It is that co-ordination which is secured by an organization from different external agencies like shareholders, customers, dealers, competitors and the government.
  • Co-ordination with the environment is absolutely essential for the survival and growth of the organization.

Internal Co-Ordination 

  • It is that co-ordination which is effected between different departments and persons within the organization.
  • Internal co-ordination can be vertical, horizontal or diagonal co-ordination. 

Vertical Co-Ordination

  • In an organization, there are different levels. It is necessary to have co-ordination between these different levels of the organizations.
  • The marketing manager and sales supervisor should have co-ordination for the effective performance of the marketing department.

Horizontal Co-Ordination 

  •  It is the co-ordination between departments or positions or persons at the same level of an organization.
  • Co-ordination between the production department, and purchase department, or material department and research department, can be considered horizontal co-ordination. 

Diagonal Co-Ordination.

  • In large organizations where there will not be much proximity in the working arrangements, there is a greater necessity for co-ordination.
  • Such co-ordination is better known as diagonal co-ordination.