Departmentalisation by geographical area is most suitable for an organisation that:

Correct answer: A. Operates across regions with different customer needs

  • A. Operates across regions with different customer needs
  • B. Offers one product in one local market
  • C. Groups employees only according to their professions
  • D. Organises work around temporary construction projects

Explanation

Geographical departmentalisation groups activities according to territories or regions. It is useful when customer preferences, regulations, or operating conditions differ from one area to another.

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Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.

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