Answer to Question #314321 in Management for NDhar

Question

Marzari, the CEO of Speedy Automobile Limited, is not happy with the current departmentation system in the organisation. Therefore, he has approached XYZ Business solutions for help. Explain what options XYZ Business Solutions can give to Marzari for selecting an appropriate departmentation strategy. Which option do you think is best suited for an automobile company? 

Answer 1

The right departmentation strategy that fits Speedy Automobile Limited is departmentation by functions. In this strategy, each department is headed by one responsible person, who is directly responsible to the General Manager. According to George R. Terry, “the functions or activities are the pivot around which effective executives develop effective and efficient organisation”.