In practice, there are many problems in achieving co-ordination between the various sub-systems of a business organization. These are listed below:

(i)    The heads of various sub-systems (production, marketing, finance personnel, etc.) have different orientations as they are experts in different fields.

(ii)    The objectives of different sub-systems or departments are different. All these objectives may not necessarily lead to accomplishment of the organizational goals.

(iii)    The sub-systems may work as watertight compartments. The interdependent between them might not be appreciated by the top level executives.

(iv)    There may be lack of co-operation and understanding between people working in various departments.

(v)    There may be a conflict between the goals of the individuals and those of the system and individuals may give preference to their personal goals.

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