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Divisionalisation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Divisionalisation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • March 2, 2021 at 11:53 am #612646
    adhilvpd
    Member
    • Topics: 6
    • Replies: 8
    • ☆

    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.

    March 2, 2021 at 3:40 pm #612709
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51560
    • ☆☆☆☆☆

    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.

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