Grouping activities on the basis of production flow is called ________ departmentalization.
A)functional
B)product
C)geographical
D)process

Question

Quizplus · Accepted Answer

Process departmentalization is the practice of grouping activities on the basis of production flow. This method involves segregating work activities based on the different stages of a production process. It helps to ensure that tasks are coordinated smoothly, and that production flows well from one stage to the next. Functional departmentalization groups activities based on their functions, product departmentalization groups activities based on the type of product, and geographical departmentalization groups activities based on the location of the business. However, none of these methods take into account the flow of production, so they are not the best choice for this question.

Grouping Activities on the Basis of Production Flow Is Called