The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.

Name: The basis for grouping positions into departments and departments into the total organization is referred to as departmentalization.
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Departmentalization is the process of grouping positions into departments and departments into the total organization based on the basis of common functions, products, customers, or geographic locations.

The Basis for Grouping Positions into Departments and Departments into the Total