In reviewing the organizational structure of your company, you notice that engineering is subdivided into mechanical, electrical, and software. Additionally, the accounting department is subdivided into accounts payable, accounts receivable, and asset management. What type of departmentalization has the company selected?
A) Process
B) Functional
C) Geographic
D) Product
E) Customer

Question

Quizplus · Accepted Answer

The company has selected functional departmentalization, which involves organizing departments based on the specialized functions they perform, such as engineering, accounting, marketing, etc. Within each department, there may be further subdivisions based on specific tasks or skills, as seen with the mechanical, electrical, and software divisions within engineering, and the accounts payable, accounts receivable, and asset management subdivisions within accounting.

In Reviewing the Organizational Structure of Your Company, You Notice