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CSEET · Business Laws and Management · Functions of Management

Consider the statements on departmentation. I: It helps in specialisation by bringing similar activities together. II: It always reduces the need for coordination among departments. Which is correct?

Only statement I is correct. Departmentation brings similar activities together and so promotes specialisation. Statement II is false because dividing work into departments tends to increase, not reduce, the need for coordination, as departments may focus on their own goals.

  1. AOnly I is correctCorrect
  2. BOnly II is correct
  3. CBoth I and II are correct
  4. DNeither I nor II is correct

Explanation

Departmentation groups related activities, enabling specialisation and clearer accountability, so I is correct. II is wrong because separate departments may pursue their own goals, which actually increases the need for coordination.

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