Departmentalization refers to what in an organization?

Departmentalization indeed refers to the clustering of individuals into related units under supervision. This organizational structure facilitates the grouping of employees based on specific functions, roles, or divisions that align with the company's overall objectives. For example, a company may have departments for marketing, finance, human resources, and production, allowing for specialization and focus within each unit.

By organizing employees into departments, organizations can streamline processes, improve communication within teams, and achieve better oversight by designated supervisors or department heads. This structuring ensures that tasks are managed more efficiently and that employees can collaborate effectively, leveraging their collective expertise to meet organizational goals.

The other options address concepts that do not capture the essence of departmentalization as accurately. While the separation of assets, disbanding teams, or hiring external consultants may occur within a business, they do not reflect the structural organizational tactic of grouping individuals based on similar functions or expertise.