A company that creates separate units for automobiles, motorcycles and generators is using which basis of departmentalisation?
Correct answer: B. Product departmentalisation
- A. Process departmentalisation
- B. Product departmentalisation
- C. Functional departmentalisation
- D. Territorial departmentalisation
Explanation
Product departmentalisation places activities into units based on the products or product lines served. Functional departmentalisation would instead group activities such as finance, production and marketing.
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About Organisational Structure and Management
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
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