Question

CityProtect Corp., a medium-sized financial services company, has a departmentalization structure in which the employees are grouped together based on their area of expertise. Thus, the firm has separate teams that handle loans, stock broker services, accounting services, insurance plans, etc. This is an example of _____ departmentalization.

Answer 1

Answer: Functional

Explanation:

The functional departmentalization is one of the type of organized form of department in an organization in which the different types of employee are performing their task and function depend upon their individual expertise and capabilities.

The main advantage of the functional departmentalization is that it helps in reduce the complexity in an organization as depend upon different operation the task are get divided to the different department in the company.

According to the given question, the given example of the City-protect corporation is best illustrating the functional department concept. Therefore, Functional is the correct answer.