What is the primary characteristic of departmentalization by division?

Departmentalization by division primarily focuses on grouping individuals or teams around specific products, services, or project lines. This method allows for each division to operate semi-independently, concentrating on its own particular product line or market segment. The distinct grouping by product helps to enhance specialization and accountability, facilitating tailored strategies that best meet the needs of that specific product or service.

When an organization uses this approach, it can more readily adapt to changes in demand, focus on performance for individual product offerings, and streamline the management of various product lines. Each division can develop its marketing strategies, production processes, and operational methods, which can lead to improved efficiency and effectiveness in meeting consumer needs.

In contrast, grouping people by function organizes individuals based on their roles or expertise rather than focusing on products, while organizing by time emphasizes scheduling rather than product lines. Establishing a chain of command relates to the hierarchy and authority structure within an organization, which is not the primary focus of departmentalization by division.