Centers on cost accounting as it relates to various functions of the firm. Emphasize Human Relations - People problems such as worker resentment, poor morale, low productivity, high worker turnover must be effectively dealt with for long term success. Provide Benefits of Specialization - Potential for learning which can enhance productivity. Potential difficulties must be weighted against potential benefits. Overspecialization can lead to isolation and lack of communication.
Some firms rotate personnel among work assignments.
Other firms might have production workers specialize while exposing management to variable work assignments. Pinpoint Responsibility - Necessary to reward good performance and correct poor performance. Authority can be delegated. Responsibility - Accountability for actions. Although authority may be delegated, responsibility remains for actions of subordinates.