Final answer:
The division of a sales territory and assignment of managers and salespeople falls under the 'organizing' function of management, which provides a structural framework for a company's operational efficiency.
Step-by-step explanation:
Dividing a large sales territory into two smaller territories and assigning managers and salespeople to them is part of the organizing function of management. This function involves arranging resources, whether human, financial, physical, or informational, to carry out an organization's plans. In the context of a business, much like a restaurant where tasks are divided among different roles such as top chef, servers, and a business manager, a sales territory division aims at optimizing the operational efficiency and achieving the economic goals of the company. The organizing process ensures that there is a structural framework that facilitates coordination among different departments and employees.