What type of departmentalization would be most effective for a small or new organization?
A) Geographic
B) Functional
C) Customer
D) Product
E) Process

Question

Quizplus · Accepted Answer

In a small or new organization, with limited resources/funds, functional departmentalization would be most effective as it groups employees with similar skills and expertise together which leads to efficiency and cost savings. It allows the organization to focus on its core activities rather than on serving specific customers or geographical regions. This structure is also straightforward and easy to maintain, which is important for a small or new organization with limited personnel and financial resources.

What Type of Departmentalization Would Be Most Effective for a Small