Question

Michael started an accounting firm. Before he entered into business, he decided to group tasks of a similar nature, and assign them to people who are skilled for the same. Which stage of organising does this indicate?

[0.80 marks]

• A. Identification and division of work
• B. Departmentalisation
• C. Assignment of duties
• D. Establishing authority and reporting

Answer 1

The correct option is B Departmentalisation

The process of organising has various steps. Initially, it is necessary to identify and divide the tasks into smaller tasks. Then, the similar tasks have to be grouped together. This step is called departmentalisation. This leads to another step in which the employees are assigned the duties based on their skills and qualification. These employees should have a clear explanation of the authority and accountability.