Yes, for example if the sub units have conflicting goals and strategies.
Tension occurs:When forces for coordination are stronger than the forces for departmentalisation, functional departmentalisation tend to work best.When forces for coordination and departmentalisation are equal, a customer form of departmentalisation works best.When forces for departmentalisation are stronger than forces for coordination, place or product departmentalisation is best
with examples discuss the different types of departmentalisation
Centralization can be categorized into several types, including administrative centralization, where decision-making is concentrated at the top levels of management; functional centralization, which focuses on centralizing specific functions like finance or marketing; and geographical centralization, where control is centralized within a specific location or region. Additionally, there is strategic centralization, where key strategic decisions are made by a central authority, and operational centralization, which streamlines procedures and operations under a central command. Each type serves different organizational needs and can impact efficiency and responsiveness.
Departmentalisation of overhead means allocation of overhead cost base on predertmined rate in case of absorption method and based in activities in case of activity based costing.
Departmentalisation is the process of forming employees into groups to accomplish specfic organizational goals . Example:departments can be organized according to the function workers perform. NB:as accounting and human resource department.
Planned economy
centralization inversely affect manpower efficiency
Urban centralization reached its peak in the US in 1900
Centralization is a common concept in business and finance. It has to do with keeping all records in a central place.
The act or process of centralizing, or the state of being centralized; the act or process of combining or reducing several parts into a whole; as, the centralization of power in the general government; the centralization of commerce in a city.
Functional testing is used for quality assurance (QA). Function testing describes what a system does. There are five steps involved with functional testing.
The main disadvantage of centralization is managers are overburdened. There is also a chance of misusing the powers and lack of environmental adaptation.