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Product departmentalization groups organizational units on which basis?
AThe production process the unit happens to use
BThe goods or services the unit produces or sells
CThe region of the world the unit operates within
DThe primary type of customer the unit deals with
Answer & Solution
Correct answer: B. The goods or services the unit produces or sells
1. Product departmentalization takes its cue from what the unit puts out.
2. Units are grouped by the goods or services produced or sold by the organizational unit.
3. Process, geographic, and customer departmentalization use the production method, the region, and the buyer instead.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Traditional Structures_
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