Application of Departmentalization John Is Aware That the Structure of His Organization Must

question 125

Multiple Choice

Application of Departmentalization
John is aware that the structure of his organization must change in order to compete more effectively in today's global market. However, he is not sure which structure would work best for his company. His company is currently organized around an accounting, human resource, sales, purchasing, and manufacturing departments. However, there are other choices available. He has considered reorganizing around their primary products, which are frames, silk flowers, dried flowers, art supplies, craft supplies, and material. However, equally important are the differing clientele they serve, who are homemakers that do arts/crafts, interior decorators, large institutions, and professional consultants. Since the business is growing, they now have stores across the United States primarily in the Northwest, Midwest, South, and Southwest areas.
Plus, his customers seldom shop for just one type of item. Frequently they purchase not only the flowers, but also the vases and other supplies that are needed in order to complete the arrangement, which means oftentimes shopping in most of the areas in the store.
-Which of the following departmental structures would be used if the grouping were based on the areas served in the United States?

• A)customer departmentalization
• B)product departmentalization
• C)functional departmentalization
• D)geographic departmentalization

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