Final Answer:
The division of an organization into groups based on work functions, as described in the scenario, is an example of departmentalization. Therefore, Option E is the correct choice.
Step-by-step explanation:
Departmentalization involves organizing an enterprise into different departments or units based on specific functions or tasks. In the given scenario, the manufacturing manager has structured the plant into departments such as engineering, accounting, manufacturing, personnel, and supply specialists. This form of organizational structure allows for specialization within each department, enabling individuals to focus on tasks related to their expertise.
Options A, B, C, and D represent concepts such as social clustering, bureaucracy, specialization (in a different context), and centralization, which do not accurately capture the scenario described.
Option E is the answer.