Location, product, function, and customer are common bases for a firm's

The above question is not complete, the following is the complete part

Locations, products, functions, and customers are common bases for a firm’s

a. span of management.

b. job design.

c. job specialization.

d. chain of command.

e. departmentalization.

The answer is E. Departmentalization

Further explanation

Departmentalization refers to the process of grouping activities into a number of departments. The division of labor produces specialists who need coordination. This coordination is facilitated by grouping specialists together in a number of departments.

Departmentalization is formed on the basis of:

Functions, which include marketing, accounting, production, finance, and so on. Products and services, in the form of washing machines, television, radio, etc. Region, for example division region I, region II, region III, region IV, etc. Subscriptions, can be in the form of industrial sales, retail traders, government, and so forth. Process or equipment, including the cutting department, assembly group, packaging section, finishing section, and so on. Time, for example, workgroups can be divided into first shift, second shift, and third shift. Waiters, reflecting business class, economy class in aircraft service, and so on. Alphanumerical, used in telephone services, for example, certain numbers are placed in one department and other numbers are placed in other departments as well. Projects and matrices, used by high-tech construction companies, consulting firms, or energy orientations.

Functional Department

Functional departmentalization classifies the same functions or similar activities to form an organizational unit.

The advantages of functional structure are:

This approach maintains the power and position of the main functions of the organization. Creating efficiency through specialization. Concentrate on organizational expertise. Enables tighter top management supervision of organizational functions.

The weaknesses of the functional structure are:

Functional structures can create conflicts between other functions. Caused bottlenecks in the implementation of consecutive tasks. Give a slower response to changes. Only focus on the interests of his duties. Causing members to have a narrower and less innovative view.

Divisional Department

A large company with many types of products organized according to divisional organizational structure.

The advantages of divisional structures are:

Suitable for a fast-changing environment. Maintain functional specialization in each division. A good training ground for strategic managers.

The weaknesses of divisional structures are:

Causing the development of potential dysfunctional competition between company resources and conflict between tasks and priorities. The issue of how much delegation of authority is given to division managers. Policy issues in resource allocation and distribution of company overhead costs.

Learn more

Departementalization

Departmentalization Divisions

Details

Class: Middle School

Subjects: Business

Keywords: Departmentalization, Division, Function

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