Question

Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalizationa.boundarylessb.productc.customerd.functionale.matrix

Answer 1

Answer: Matrix departmentalization.

Explanation:

Matrix departmentalization occurs when the taskforce and functional departmentalization are combined in other to improve different processes, so that a single activity could lead to an improvement in cost advantage and better service delivery to customers. It was introduced in the early 1960s as a response to the effect of growth problem and size of enterprise that requires technical skills and more flexibility.

Advantage of matrix departmentalization.

• It is aimed at final result.

• It spots product profit responsibility.

Disadvantages.

• Cause delay in decision making.

• Could lead to disunity or cause problem making unanimous decision.

• Could lead to conflict between various authorities within the organization.

Answer 2

Answer:

E) matrix departmentalization

Explanation:

Matrix departmentalization is an organizational structure that combines functional and task force departmentalization in order to improve economies of scale and/or customer service.

Commerce Insurance Services is divided functionally in five divisions, and each division is also divided along product lines (tasks).