Functional departmentalization:
A) Maintains the power and prestige of the major functions.
B) Creates efficiency through the principles of specialization.
C) Permits tighter top-management control.
D) All of the above.

Question

Quizplus · Accepted Answer

Functional departmentalization creates efficiency through specialization by grouping activities by function (such as marketing, finance, and production). This allows employees with similar skills and knowledge to work together and enables better communication and decision-making within the department. Additionally, it allows for tighter top-management control as each department has a specific area of responsibility and can be held accountable for their performance. Lastly, it maintains the power and prestige of major functions, as each department has a clear area of expertise and can become a center of excellence in that area.

Functional Departmentalization