The Process of Grouping Work Positions into Formal Teams and Departments

question 72

Multiple Choice

The process of grouping work positions into formal teams and departments, and then linking them together vertically and horizontally within the organisation, is known as:

• A) organising.
• B) departmentalisation.
• C) structural team development.
• D) differentiation.
• E) functional team management.

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Definitions:

Socially Optimal

A situation in economics where resources are allocated in the most efficient way from a societal perspective.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an undesirable or inefficient market outcome by being equal in value to the externality.

Positive External Benefits

benefits that result from a product or service's use that affect someone other than the direct buyer or seller, often leading to social gains.

Optimal Amount

The quantity of a good or service that achieves the best possible balance between costs and benefits.