Which of the following statements is true regarding divisional departmentalization?
A) It refers to grouping employees according to their skills.
B) It makes the organization more rigid, and incapable of reacting quickly to change.
C) It reduces the autonomy of business units.
D) It results in the creation of a virtual organization.
E) It can increase costs through duplication.

Question

Quizplus · Accepted Answer

E) Divisional departmentalization can increase costs through duplication (if every product division has its own human resources department, for example).

Which of the Following Statements Is True Regarding Divisional Departmentalization