Departmentalization based on the production process used by the organizational unit.

• A. Process Departmentalization
• B. Product Departmentalization
• C. Functional Departmentalization
• D. Geographic Departmentalization

Answer: (A)

Focus on how the work is organized around the steps involved in making the product. Process departmentalization groups activities by the production processes or stages used to create goods or deliver services. In practice, you’d have departments devoted to specific processes—such as machining, molding, painting, assembly, or finishing—so that all the work requiring similar equipment and skills flows through those process-focused units. This setup makes it easier to coordinate the sequence of work, standardize workflows, and maximize efficiency where a product must pass through multiple specialized processes. It’s different from other forms: product departmentalization arranges by product lines, functional departmentalization by function (like marketing or finance), and geographic departmentalization by location. The trade-offs include potential duplication of resources across processes and more cross-department coordination for end-to-end tasks, but for operations that hinge on the sequence and efficiency of processing steps, this approach is the best fit.