Bryn Ltd sells and repairs photocopiers. The organisation has operated for many years with two departments, the
Question:
Bryn Ltd sells and repairs photocopiers. The organisation has operated for many years with two departments, the sales department and the service department, but the departments have no autonomy. The organisation is now thinking of restructuring, so that the two departments become profit centres and the managers of the departments are given autonomy. The individual salaries of the managers will be linked to the profits of their respective departments.
What are the likely consequences of structuring the departments as profit centres? Select ALL that apply.
- Improved decision making due to local knowledge.
- Departmental managers will become more motivated and more autonomous.
- Senior management will find the new structure more time consuming to handle.
- Possible loss of control from senior management.
- Dysfunctional decision making.
- Possible duplication of functions and costs.
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