What is the term for the process of dividing work activities into units within an organization?

The term that refers to the process of dividing work activities into units within an organization is departmentalization. This concept involves organizing tasks and responsibilities into distinct groups or departments based on various criteria such as function, product, geography, or customer type. By establishing these departments, an organization can enhance efficiency, improve coordination, and establish clear lines of authority, which ultimately contributes to achieving its overall objectives.

Departmentalization allows for a more manageable structure, enabling teams to specialize in their respective areas and focus on specific goals, leading to increased productivity and expertise within those units. This process is essential in larger organizations where the complexity of tasks requires a systematic approach to managing resources and personnel effectively.