A factory groups its activities into purchasing, machining, assembling and packaging departments. This is departmentalisation by:
Correct answer: D. Work process
- A. Customer type
- B. Product category
- C. Geographical area
- D. Work process
Explanation
The departments are formed around successive stages of production, so the basis is the work process. Product departmentalisation would instead group activities around different goods or product lines.
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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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