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Departmentalization groups jobs together for what reason?
ASo that pay can be equalized across the firm
BSo that every job reports to the chief executive
CSo that similar or associated tasks are coordinated
DSo that the number of employees can be reduced
Answer & Solution
Correct answer: C. So that similar or associated tasks are coordinated
1. Division of labor leaves a firm with many separate jobs.
2. Managers then group those jobs so that similar or associated tasks and activities can be coordinated.
3. That grouping of people, tasks, and resources into organizational units is departmentalization.
4. Equal pay and headcount cuts are not what the grouping is designed to achieve.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Traditional Structures_
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