Question

Which of the following takes routine, transaction-based activities that are dispersed throughout the organization and consolidates them in one place? a. consolidation centers b. outsourcing centers c. human resource centers d. shared service centers

Answer 1

Answer:

D. Shared service centers

Explanation:

This is the consolidation of different business operations that are used by multiple parts of the same organization. It takes routine transaction based activities that are dispersed throughout an organization and joins them together in one place. Doing this is very cost efficient because back office is centralized and lots of redundancies are eliminated.

Answer 2

Answer:

D) shared service centers

Explanation:

A shared services center is usually in charge of certain administrative activities that are common to all the business units of a large organization, e.g. accounting and finance, human resources, legal services. Business units will be organized in a way that they focus only on their productive tasks, while basically all back office tasks will be centralized to one single shared service center.

E.g. large corporations like banks that have several business units that are located in different areas of a same city, will use only one service center to deal with all their administrative tasks. Not every branch has its own administrative unit, all the branches that are organized under a geographical area will share one.