Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone. Each unit performs its specific set of tasks in Everyday Fashions Corp. This is an example of

Question

Quizplus · Accepted Answer

This scenario exhibits differentiation, which is the process of dividing an organization into different departments or units, each performing a unique set of tasks. The presence of marketing, production, and finance departments with their own managers and subordinates indicates differentiation within Everyday Fashions Corp. The other options do not accurately describe the situation presented in the scenario.