Question

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another. To solve the problem, he combined the company's twelve U.S. product groups into three regional management centers. This solution is referred to as departmentalization by ___________.A) location.B) function.C) product.D) customer.E) objective.

Answer 1

Answer:

A. Location

Explanation:

Location departmentalization or departmentalization of location refers to the categorization of jobs on the basis of geographical location or areas. When local departmentalization is applied, there is a structuring or arranging of jobs based on geographical sites or areas. It is a reasonable arrangement for organizations that manufactures and sells goods in different locations. In this case, to foster cooperation within product groups, they are departmentalize from 12 groups to 3 regional management center based on location departmentalization.