Asked by joely Tornero on Sep 24, 2024

verifed

Verified

​All of the following can cause conflict between divisions EXCEPT

A) ​Coordination between divisions does not benefit all divisions equally
B) managers of profit centers care too little about the effects of their decisions on other divisions
C) corporate executives reward managers based on firm profitability instead of divisional profitability
D) ​corporate executives cannot tell when one divisional manager's decisions are appropriate or not

Divisional Profitability

A measurement of the financial performance of individual divisions or segments within a company, indicating their contribution to overall profit.

Coordination

The process of organizing people or groups so that they work together properly and well.

Profit Centers

Divisions within a company that are treated as separate business units, with their performance measured based on their ability to generate profit.

  • Discern the motives and answers for confrontations among different sections in a corporate setting.
verifed

Verified Answer

NF
Naima Farzana Writu2 days ago
Final Answer :
C
Explanation :
Corporate executives rewarding managers based on firm profitability instead of divisional profitability is more likely to align the interests of different divisions towards the overall success of the firm, rather than causing conflict between them. This approach encourages cooperation and mutual support among divisions to enhance the company's overall performance.