Departmentalisation by product is most suitable when an organisation
Correct answer: B. Offers several distinct products requiring separate attention
- A. Has employees performing only one specialised activity
- B. Offers several distinct products requiring separate attention
- C. Operates from a single location with identical customers
- D. Uses one process for every product and service
Explanation
Product departmentalisation groups activities around separate products or product lines. It gives managers responsibility for the performance of each product area, unlike functional departmentalisation, which groups work by specialisation.
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About Principles of Management
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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