Define the processes of differentiaton and integration. Solution A. Differentiation: Differentiation is the process of deciding how to divide the work in an organization. It ensures that all essential tasks are assigned to jobs and will be accomplished. An earlier study identified four dimensions of differentiation: (1) manager\'s goal orientation, (2) time orientation, (3) interpersonal orientation, and (4) formality of structure. Differentiation consists of horizontal differentiation (the degree of differentiation between organizational subunits), vertical differentiation (difference in authority and responsibility in the organizational hierarchy), and spatial differentiation (geographic dispersion of an organization .