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Question: Which of the following is not usually a consequence of divisionalisation?
A Duplication of some activities and costs
B Goal congruence in decision making
C Faster decision making operational level
D Reduction in head office control operations
The answer is B and I dont know why it is. Can u explain the answer.
As I do explain in my free lectures, the division managers are only concerned with improving the performance of their division and the danger is that they then make decisions which are good for their division but not good for the company as a whole. Goal congruence is when the divisions make decisions which are good for the company as a whole.