A company groups jobs according to the types of activities the employees perform and the type of expertise they have. What basis for departmentalization is the company using?

Location

Customer

Product

Functional

The table lists the advantages to organizations of different types of departmentalization. For each row, select the kind of departmentalization that offers that advantage.

Description	Type of Manager
Performance is easily measured and accountability is clear.
Department supervisors need to be an expert in only one type of work.

Select the correct response to the following question.

Which of the following is a disadvantage of location departmentalization?

Employees may focus on the success of their product and lose sight of tradeoffs that would benefit the organization as a whole.

It can be difficult to determine which department is accountable for success or failure.

Administrative costs can be high because activities in different places need to be monitored across department boundaries.

Administrative costs can be high due to the need to integrate activities of different departments related to the same customer.