CSEET · Business Laws and Management · Functions of Management
Sundaram Foods sells its products through separate divisions for Northern, Western, Southern and Eastern India, each handling all activities in its region. Which basis of departmentation is this?
Departmentation by territory is correct, because the divisions are created on the basis of geographical regions, each handling all activities for its area. It is not functional or product based, since the basis of grouping is location rather than the work type or the item sold.
- ADepartmentation by function
- BDepartmentation by territoryCorrect
- CDepartmentation by product
- DDepartmentation by process
Explanation
Units are formed according to geographical regions, each performing all activities for its area, which is territorial (geographic) departmentation. It is not functional since each region carries many functions, and it is not product-based since the grouping is by area rather than by item.
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