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Hello.
I have a question.
Which one of the following is NOT usually a consequence of divisionalisation?
A. Duplication of some activities and costs
B. Dysfunctional decision making
C. Faster decision-making at operational level
D. Reduction in head office control over operationsThe answer is B but why? I thought it is one of of the consequences of divisionalisation??
B is a possible consequence (if there are poor performance measures) but it is not a usual consequence.
All of the other three are usual (i.e. common) consequences.
So they are all consequences of divisionalisation. It’s just the matter of whether it’s usual or possible. Is that what you were trying to say, Sir?
Correct. The other three are all usual consequences.
B is a possible consequence, but is not usually the case.
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