Functional departmentation is preferable to product departmentation as the organization increases in size.

Question

Quizplus · Accepted Answer

As an organization increases in size, product departmentation often becomes more preferable because it allows for a focus on specific product lines, facilitating specialized management, better resource allocation, and more targeted market strategies, which can be more efficient and effective in larger, more complex organizations.

Functional Departmentation Is Preferable to Product Departmentation as the Organization