Of the four bases most often adopted for departmentalisation, which one is the commonest?
A) Functional
B) Geographical
C) Customer
D) Product

Question

Quizplus · Accepted Answer

Departmentalisation is the basic structuring device for effectively coordinating the divided tasks in an organisation by regrouping them under some performance-based logic. The four bases most often adopted for such regrouping are function, product, geographical region and customer. The commonest among these is functional departmentalisation, where the activities are grouped according to major functions such as manufacturing, marketing, finance and personnel. When an organisation is diversified, it might be more useful to focus on the different products. Similarly, if an organisation has operations in different regions or has large customers with different needs, the regions or the customers could form the basis for departmentalisation.

Of the Four Bases Most Often Adopted for Departmentalisation, Which