CMA Foundation · Fundamentals of Business Economics and Management · Communication, Co-ordination, Collaboration, Monitoring and Control
At Sundaram Auto Ltd, the sales team promises delivery dates without consulting production, and production schedules batches without checking sales forecasts. Which need for co-ordination does this situation mainly illustrate?
The situation shows the need for co-ordination to avoid conflict and overlap arising from differing departmental objectives. Sales and production act independently and so clash over delivery commitments. Co-ordination aligns their plans with overall organisational goals, preventing broken promises, wasted effort and inconsistent decisions.
- AReducing the number of levels in the hierarchy
- BAvoiding conflict and overlap caused by differentiation of departmental objectivesCorrect
- CIncreasing the span of control of the managing director
- DEliminating the need for written policies
Explanation
Departments pursue their own specialised goals, and without co-ordination these clash, as here with delivery promises and production schedules. Co-ordination aligns departmental objectives so as to avoid conflict and duplication. The other options do not address this mismatch between departments.
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