What type of departmentalization would be most effective for a small or new organization?

A. Geographic
B. Functional
C. Customer
D. Product
E. Process



Answer :

Final answer:

Product departmentalization is ideal for small or new organizations as it allows a focused approach to managing specific offerings and tailoring strategies to meet unique product needs.


Explanation:

Product departmentalization would be most effective for a small or new organization. This type of departmentalization groups activities around products or services, allowing for a focused approach to managing and developing specific offerings.

For instance, if a small company offers different product lines, such as clothing and electronics, having separate departments for each product line can enhance innovation, improve customer service, and streamline operations.

By organizing around products, the organization can tailor strategies, marketing efforts, and production processes to meet the unique needs of each product line.


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