Departmentation Quiz
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Questions and Answers

What are some advantages of departmentation by geography?

  • Better face to face interaction with local interests (correct)
  • Improved coordination in a region
  • Taking advantage of economies of local operations
  • Furnishes measurable training ground for general managers
  • What are some disadvantages of departmentation by customer group?

  • Requires more persons with general manager’s abilities (correct)
  • Makes control more difficult for top management
  • Tends to make maintenance of economical central services difficult
  • Develops expertness in customers area
  • What is departmentation by product?

  • Grouping of activities reflecting primary interest in customers
  • Grouping of activities according to products or product lines (correct)
  • Grouping of activities by area or territory
  • Placing responsibility at a lower level
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