All of the following can cause conflict between divisions EXCEPT
A)Divisional managers are rewarded on the profitability of the firm,instead of profitability of the division
B)managers of profit centers care too little about the effects of their decisions on other divisions
C)managers are rewarded only for how much profit their division generates
D)corporate executives cannot tell when one divisional manager's decisions are appropriate or not

Question

​All of the following can cause conflict between divisions EXCEPT
A)​Divisional managers are rewarded on the profitability of the firm,instead of profitability of the division     
B)managers of profit centers care too little about the effects of their decisions on other divisions
C)managers are rewarded only for how much profit their division generates
D)​corporate executives cannot tell when one divisional manager's decisions are appropriate or not

Quizplus · Accepted Answer

Option A is the correct choice because if divisional managers are rewarded based on the profitability of the entire firm rather than just their own division, it encourages cooperation among divisions to improve the overall performance of the company, reducing the likelihood of conflict.

​All of the Following Can Cause Conflict Between Divisions EXCEPT

All of the Following Can Cause Conflict Between Divisions EXCEPT