Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find to be a more efficient means of conducting business.

More than one basis for departmentalization

Explanation:

Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find more than one basis for departmentalization to be a more efficient means of conducting business where the main logic and philosophy is to group various activities. There are many forms and basis of departmentalization which could be either functional departmentalization, customer departmentalization, product departmentalization or location departmentalization. It works quite well and efficient when organization uses more than one basis for departmentalization.