Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which factor can lead to ineffective decisions in committee settings?

1. Active participation by all members

2. Strict adherence to agendas

3. Too many members diluting focus

4. Effective communication among members

The correct answer is: Too many members diluting focus

Ineffective decision-making in committee settings can often stem from having too many members, which may dilute focus and hinder productive discussions. When a committee is overstaffed, the diversity of opinions can lead to confusion and indecision, as the larger number of perspectives may overwhelm the group, making it challenging to reach a consensus. This can result in prolonged discussions without resolution, as members might become focused on individual agendas rather than the collective objectives of the committee. In contrast, active participation by all members, strict adherence to agendas, and effective communication typically enhance decision-making processes. Active participation encourages a variety of perspectives and fosters engagement, while adherence to agendas ensures that the committee stays on track and covers all necessary topics. Effective communication facilitates clarity and understanding among members, which is essential for collaboration and decision-making. Therefore, the imbalance caused by too many members is what primarily contributes to ineffective decisions.