Question : 'Aman runs a clothing company. There is lot of chaos in the organisation. He decided to do grouping of similar activities into departments, units, sections, etc. using several criteria as a basis to facilitate specialisatoin.' Identify the step of organising process referred here.
Option 1: Identification and division of work
Option 2: Departmentalisation
Option 3: Assignment of duties
Option 4: Establishing reporting relationship
Correct Answer: Departmentalisation
Solution :
After dividing the work in smaller jobs, related and similar jobs are grouped together to put under one department. In the above case, There is lot of chaos in the organisation. He decided to do grouping of similar activities into departments, units, sections, etc. using several criteria as a basis to facilitate specialisatoin. This is known as departmentation.
Hence, option 2 is the correct answer.