The managers at a large soft-drink company prefer that employees be grouped with others doing the same activity, as this simplifies supervision. However, they are concerned that this slows decision making and may cause employees to emphasize the needs of their own departments. This company is most likely departmentalized by which of the following?
A) function
B) customer
C) product
D) specialty

Question

Quizplus · Accepted Answer

Departmentalization by function groups employees based on the tasks they perform, which would fit with the managers' preference for grouping employees doing the same activity. However, this type of departmentalization can lead to silos and a lack of communication, which would explain their concerns about slowing decision making and employees focusing only on their own departments. Departmentalization by customer, product, or specialty would not necessarily align with the managers' preference for grouping employees by activity.

The Managers at a Large Soft-Drink Company Prefer That Employees