Divisions that categorize jobs according to the activity to be done are called ___________ divisions.

• A. Functional divisions
• B. Geographic divisions
• C. Product divisions
• D. Process divisions

Answer: (A)

Dividing jobs by the activity to be done creates functional divisions. In this setup, departments form around specific functions such as marketing, accounting, operations, and human resources, concentrating expertise and activities that share the same skills. This arrangement makes it natural to develop specialists, standardize processes, and manage efficiency within each function. It’s the best fit for organizing by activity because it directly aligns roles with the work they perform, unlike geographic divisions (by location), product divisions (by product lines), or process divisions (by stages in the workflow), which organize around different criteria. Keep in mind that while this structure enhances functional expertise, coordinating across functions can require deliberate cross-functional communication.