In an effort to simplify the organizational structure at Stamper Oil, the CEO makes the decision to separate the organizations into small groups based on their responsibilities. The new groups include operations, billing, shipping, and purchasing. This best demonstrates the concept of

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The CEO's decision to separate the organization into small groups based on their responsibilities is an example of departmentalization, which involves dividing an organization into different departments, each of which performs tasks according to their specific function such as operations, billing, shipping, and purchasing.

In an Effort to Simplify the Organizational Structure at Stamper