Montaigne-Chimie SA consists of seven operating divisions each of which operates independ- ently
Montaigne-Chimie SA consists of seven operating divisions each of which operates independ- ently
Montaigne-Chimie SA consists of seven operating divisions each of which operates independ- ently. The operating divisions are supported by a number of support divisions such as R&D, labour relations and environmental management. The environmental management group consists of 20 environmental engineers. These engineers must seek out business from the operating divisions – that is, the projects they work on must be mutually agreed to and paid
for by one of the operating divisions. Under Montaigne-Chimie’s rules, the environmental group is required to charge the operating divisions for environmental services at cost.
Required
1 Is the environmental management organisation centralised or decentralised?
2 What type of responsibility centre is the environmental management group?
3 What benefits and problems do you see in structuring the environmental management group the way Montaigne-Chimie has? Does it lead to goal congruence and motivation?
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