An appropriate basis of departmentalization for multinational companies is
A) product.
B) function.
C) location.
D) customer.
E) sequence.

Question

Quizplus · Accepted Answer

Location-based departmentalization allows multinational companies to group employees based on the countries or regions they serve. This is effective because employees can better understand the unique needs and preferences of customers in their respective regions, and cultural and language barriers can be overcome more easily if employees are physically located in the same area. Product-based and customer-based departmentalization may not be effective for multinational companies because products and customers may differ greatly across different regions. Function-based departmentalization may be useful for specific functions such as finance or human resources, but may not be as effective for operational functions. Sequence-based departmentalization is not typically used in multinational companies.

An Appropriate Basis of Departmentalization for Multinational Companies Is