Departmentalization is the process of
A) creating separate profit centres.
B) creating separate revenue centres.
C) developing an organization chart.
D) creating chains of command.
E) grouping jobs into logical units.

Question

Quizplus · Accepted Answer

Departmentalization refers to grouping jobs into logical units based on similar tasks, functions, products, customers, or geographic locations. It helps in achieving specialization, coordination, and control in an organization. It does not necessarily involve creating profit centers or revenue centers, developing an organization chart, or creating chains of command. Therefore, option E is the most suitable choice.

Departmentalization Is the Process of