If university faculty try to break off from existing departments and form specialty departments, will this produce an inefficiently large number of departments?
In most universities faculty with specialized interests will often attempt to break off from existing departments and form ones devoted to their own specialties. I am trying to determine if this will produce an inefficiently large number of departments in Universities and if this is a smaller problem at for-profit corporations than at nonprofit or governmental universities.
Although some amount of specialization is useful, excessive specialization leads only to an excess of bureaucracy and unnecessary costs.
It is beneficial to a university to have Physics and Philosophy be in different departments. Anyone would admit that they are different fields and will benefit from having separate administrations. But what if Platonic philosophers want a different department than Kantian philosophers and both of these want to be separate from utilitarians? What happens then is that there is wasteful duplication. If these three kinds of philosophers create their own departments, you end up with more deans and departmental secretaries and such than would be needed.
A university has to find some sort of happy medium between excessive centralization of control and excessive decentralization. Left to their own devices, faculties would generally push towards excessive decentralization, causing inefficiency and waste.