Grouping activities on the basis of production flow is called __________ departmentalization.
A) functional
B) product
C) geographical
D) process
E) customer

Question

Quizplus · Accepted Answer

Grouping activities based on production flow refers to process departmentalization. This approach involves organizing departments around specific processes or stages of production, such as design, assembly, or quality control. This type of departmentalization is useful for companies that produce complex products or services, as it allows for greater specialization and expertise within each department. Functional departmentalization refers to grouping activities based on the functions or roles they perform, product departmentalization is based on specific products, geographical departmentalization is based on specific regions, and customer departmentalization is based on specific customer groups.

Grouping Activities on the Basis of Production Flow Is Called