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MCQs · Q2

Q.Grouping similar and related jobs into departments such as production, marketing and finance is known as:
(A) Delegation
(B) Departmentalisation
(C) Decentralisation
(D) Staffing

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This question checks recognition of the specific terminology used in the organizing process.

(A) Delegation — incorrect. Delegation refers to a superior entrusting a subordinate with authority and responsibility to perform a specific task; it is about transferring authority downward, not about grouping activities into departments.

(B) Departmentalisation — correct. This is the step in the organizing process where similar and related activities (e.g., all activities relating to production, or all activities relating to marketing) are grouped together into a single department or unit, so that they can be coordinated and supervised as one logical group.

(C) Decentralisation — incorrect. Decentralisation refers to the systematic dispersal of decision-making authority throughout the organisation, away from a small group at the top; it concerns where decisions are made, not how work is grouped into departments.

(D) Staffing — incorrect. Staffing is the separate management function of filling the departments and positions created during organizing with suitable people; it comes after departments have already been formed, not the act of forming them.

✓Final answer

(B) Departmentalisation

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