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ACCA Applied Knowledge · Business and Technology · Business organisational structure

A clothing retailer groups its staff into separate units for Buying, Marketing, Finance and Human Resources, with each unit led by a specialist manager. Which basis of departmentation is being used?

The retailer uses functional departmentation. Staff are grouped according to the specialist activity they carry out, such as buying, marketing, finance and human resources, rather than by location or by the products they deal with.

  1. AFunctionalCorrect
  2. BGeographical
  3. CProduct

Explanation

Grouping staff by the specialist work they perform (buying, marketing, finance, HR) is functional departmentation. Geographical grouping would use regions, and product grouping would use product lines, neither of which is described.

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