Which type of departmentalization organizes work units based on the goods and services offered by a company?

The correct answer is product departmentalization, which organizes departments and work units based on the specific products or services that a company offers. This structure is particularly beneficial for companies that produce a diverse range of products, as it allows for more specialized management and strategic focus within each product line. Each department can concentrate on the development, marketing, and sales of its respective products, leading to increased efficiency and a stronger alignment with market needs.

In product departmentalization, teams can develop expertise in their particular area, enhancing innovation and responsiveness. For instance, in a company that produces both electronics and home appliances, each product category would function as its own department with dedicated resources and strategies.

This approach contrasts with other types of departmentalization, such as functional, where departments are organized by functions like marketing or finance, or process, which is centered around the specific processes that products go through. While customer departmentalization focuses on meeting the needs of different customer segments, product departmentalization is fundamentally centered on the nature of the goods or services provided, making it the most suitable choice for this question.