There is consensus that functional departmentation ________ than product departmentation.

A) is less efficient
B) is more sensitive to customers' needs
C) is more logical
D) leads to more coordination problems between functions
E) works better in very large firms

Functional Departmentation

Employees with closely related skills and responsibilities are assigned to the same department.

Product Departmentation

Departments are formed on the basis of a particular product, product line, or service.

Coordination Problems

Difficulties that arise in the process of organizing people or groups to allow for harmonious action or function.