PK0-004 · Question #463
An organization is divided into three separate entities based on geographical region. Which of the following types of organizational change is this?
The correct answer is A. Relocation. When an organization restructures by dividing its operations based on geographical regions, this is classified as a relocation (A) type of organizational change. The geographic dimension is the key driver - operations are being distributed or repositioned across locations…
Question
An organization is divided into three separate entities based on geographical region. Which of the following types of organizational change is this?
Options
- ARelocation
- BOutsourcing
- CDemerger
- DSplit
How the community answered
(24 responses)- A92% (22)
- C4% (1)
- D4% (1)
Explanation
When an organization restructures by dividing its operations based on geographical regions, this is classified as a relocation (A) type of organizational change. The geographic dimension is the key driver - operations are being distributed or repositioned across locations. Outsourcing (B) involves hiring external parties to perform work. A demerger (C) involves formally splitting one legal entity into independent, separately governed companies. A split (D) similarly implies creating independently operating organizations. Since the divisions here are geographically driven regional units of the same organization, relocation is the correct classification.
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