Departmentalization Methods in Organizations
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Questions and Answers

What is the basis of departmentalization called when it is based on geography or territory?

  • Process departmentalization
  • Geographic departmentalization (correct)
  • Functional departmentalization
  • Customer departmentalization

Which type of departmentalization groups activities based on work or customer flow?

  • Process departmentalization (correct)
  • Functional departmentalization
  • Product departmentalization
  • Geographic departmentalization

What characterizes cross-functional teams in an organization?

  • They focus only on geographic regions
  • They tackle tasks that require diverse skills (correct)
  • They are part of process departmentalization
  • They are comprised of individuals with similar skills

In which way do organizations emphasize customer departmentalization?

<p>By placing greater focus on customer needs (B)</p> Signup and view all the answers

How does Black & Decker organize its divisions according to the text?

<p>Along functional lines (B)</p> Signup and view all the answers

What is the primary advantage of functional departmentalization?

<p>It enables specialization and economies of scale. (D)</p> Signup and view all the answers

Which form of departmentalization focuses on grouping employees based on the organization's major product areas?

<p>Product departmentalization (C)</p> Signup and view all the answers

What is the primary advantage of product departmentalization?

<p>It allows for better tracking of product performance. (D)</p> Signup and view all the answers

In customer departmentalization, employees are grouped based on:

<p>The type of customer the organization seeks to reach. (D)</p> Signup and view all the answers

What is the underlying assumption behind customer departmentalization?

<p>Customers in each department have a common set of problems and needs that can best be met by specialists. (D)</p> Signup and view all the answers

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