Departmentation is the grouping of organizational subsystems. The greatest advantage of functional Departmentation is that it:
Answer(s): A
Departmentation by function is the most widely used method and is found in almost every enterprise at some level. The most common departments are selling, production, and finance though other terms maybe used). These often extend upward in the organizational chart to the level below the chief executive. If persons within a department have similar knowledge, skills, and interests, they can specialize in the solution of particular problems.Thus, problem solving becomes more efficient.
Departmentalization may be performed by:I). FunctionII). ProductIII). Geography
Answer(s): D
Departmentation may be performed by function, product, and geography. Departmentation by function is found in almost every organization at some level, whether for-profit or nonprofit. The most common departments in for-profit organizations are marketing, production, and finance though other terms maybe used). These often extend upward in the organizational chart to the level below the chief executive. Departmentation by product or service is growing in importance for multiline, large-scale enterprises. It is often an outgrowth of functional departmentation. The result is that product-service subunits may be treated as separate businesses with a high degree of autonomy. Managers must therefore have a broad perspective, not a merely functional orientation. Departmentation by territory geographic location) is favored by national or multinational firms and government agencies with scattered resources, offices, or plants.
Departmentalization is a common form of business integration. Grouping together all related jobs, activities, and processes for a given business objective into a major organizational subunit is an example of:
Departmentation by product or service is growing in importance for multiline, large-scale enterprises and is an outgrowth of functional departmentation. The result is that productservice subunits may be treated as separate businesses with a high degree of autonomy. Managers must therefore have a broad perspective, not a merely functional orientation.
The form of departmentation that most readily lends itself to use of profit centers is:
Answer(s): C
Departmentation by product is growing in importance for multiline, large-scale enterprises. It is an outgrowth of functional departmentation and permits extensive authority for a division executive over a given product or product line. Its advantages include better use of specialized resources and skills, ease of coordination of the activities for a given product, and simpler assignment of profit responsibility. It is compatible with a decentralization strategy and provides, via product profit centers, a basis for allocating capital more efficiently.
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K.Tho Commented on October 05, 2023 Very helpful UNITED STATES
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