A firm divides its operations into North, South, East and West regions, with each unit serving its assigned area. This is departmentalisation by:
Correct answer: B. Geography
- A. Product
- B. Geography
- C. Customer type
- D. Work process
Explanation
Geographical departmentalisation groups activities according to territory or region. Product departmentalisation would create units around different goods or services, not locations.
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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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