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Question

An office supply firm that has three departments based on retail, wholesale, and governmental customers should be using which of the following types of departmentalization?

A
Functional
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B
Product
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C
Customer
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D
Geographic
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Solution

The correct option is A Functional
  • Grouping of jobs of similar nature under functional and organizing these major functions as separate departments creates a functional structure.
  • For example, in a manufacturing concern division of work into key functions will include production, purchase, marketing, accounts and personnel.
  • Thus, a functional structure is an organisational design that groups similar or related jobs together.

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