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.