Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is one advantage of shared service organizations?

1. Increased departmental silos

2. Improved employee isolation

3. Better coordination of operations

4. Lower quality of service delivery

The correct answer is: Better coordination of operations

One significant advantage of shared service organizations is better coordination of operations. This model focuses on consolidating various functions or departments into a single service unit that serves multiple parts of the organization. By doing so, shared services can streamline processes, reduce redundancies, and enhance communication between departments. This coordination allows for standardized processes and procedures, which not only improve efficiency but also increase the overall quality of service delivered across the organization. Effective collaboration among different functional areas fosters an environment in which resources can be shared more efficiently, and best practices can be disseminated throughout the organization. As a result, the organization can respond more quickly and appropriately to both internal and external demands. Furthermore, this centralized approach can lead to cost savings and improved performance metrics, as interdepartmental barriers are minimized and teams work together towards common objectives rather than in isolated silos. This is in stark contrast to options such as increased departmental silos or improved employee isolation, which do not support the objectives of a shared service model.