Decentralised procurements management

Hi,


I don't understand the answer from following question, can anyone explain?


The performing organisation is trying to decide whether to split the contracts department and assign procurement responsibilities to departments directly responsible for the projects. A procurement professional might not want this split to occur because they would lose ______________ in a decentralised contracting environment.


a. Standardised project management practices


b. Loyalty to the project


c. Experience


d. Acess to others with similar expertise.


I choosed answer c, but it is supposed to be d. Explanation was: 


Choice A is incorrect, as the change would not impact the entire project management process, only procurement. Loyalty to the project (choice B) would be gained, not lost, in a decentralized environment. In a decentralized procurement situation, there is less focus on maintaining the skill or expertise of the contracting function, making choice D the best answer.


I don't understand this argument. Decentralised department does not mean that proc. managers would not have acess to other proc. managers - they will still be in same company. But they will maybe have less knowledge and experiences, because they will share their knowledge less. Also Rita's book says that disadvantage of decentralised proc. department is decrease experiences.


So, why the anser is not c?


Tnx and KR.

admin's picture

Between option C and D there is an overlap, when you say you lose access to others with similar expertise, in some way you lose the experience too.


However in the context of this question D is more appropriate, since procurement would be split into two departments and practically once the split happens it would not be as easy to contact a person in another department. The fact that they are splitting the contract department also means that the volume of work is increasing or the complexity is increasing due to which they want it to be a more focussed group.


Option C is a little generic in my opinion , D is more specific hence the BEST answer. 


Generally when a department is split the new department would have its own charter, Goal sheet etc. They would be working under pressure initially till they stabilize, all this would reduce the access to their people