Question

A company’s production department has many managers who are experts in different fields. The department has a packaging manager, assembly manager, quality manager, and an inspection manager. This division of management responsibilities is an example of:_____________A. formalization.B. centralization.C. specialization.D. standardization.

Answer 1

Answer:

Option C, SPECIALIZATION

Explanation:

Formalization in an organizational structure is a process in which managers specify (in writing), procedure, rules and responsibilities for the individual employees, organizational units, groups and others which leads to the development of processes and operating procedures.

Centralization refers to the process in which activities involving planning and decision making within an organization are concentrated to a specific leader or location (head office).

Specialization, which is sometimes called division of labour, refers to the degree to which an organization divides individual tasks into separate jobs.

Standardization is the process by which a company makes it methods, especially its production processes, uniform throughout it's organization.

*Specialization allows a manager to complex tasks and break them into smaller and more precise tasks that individual can complete.

Therefore, the division of management responsibilities described in the question is an example of SPECIALIZATION.

Answer 2

Answer: C. Specialization.

Explanation: The division of management above is an example of specialization. In economics, specialization occurs when entities focus on specific areas of the production to gain a greater degree of efficiency. By having different managers for different operations in the company, specialization has occurred. It confers a few advantages, such as exploiting the unique talents of these managers in areas where they perform the best, helping both the individual, as well as the overall company among others.