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Grouping units for lumber cutting, furniture finishing, and shipping is which kind of departmentalization?
AFunctional, based on the business functions used
BCustomer, based on the type of buyer that is served
CProcess, based on the production process that is used
DGeographic, based on segmentation of the territory
Answer & Solution
Correct answer: C. Process, based on the production process that is used
1. Cutting, finishing, and shipping are successive steps in making and moving a good.
2. Grouping units by the production process used is process departmentalization.
3. Functional grouping would use marketing or finance, not production steps.
4. Customer and geographic grouping would use buyer type and territory, neither of which appears here.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Traditional Structures_
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