What organizational arrangement focuses on grouping employees by their specific activities?

The correct answer, which focuses on grouping employees by their specific activities, is best described by a functional arrangement. This organizational structure organizes employees based on their roles or functions within the company, such as marketing, finance, human resources, and production. Each department operates independently but works toward the overall goals of the organization.

This approach allows for specialization, where employees can focus on their strengths and developing expertise in their specific roles, leading to increased efficiency and productivity within those functions. Team leaders or department heads typically manage these groups, facilitating clear lines of authority and communication within each functional area.

In contrast, a divisional arrangement organizes employees based on different products, services, or geographical locations, which supports broader operational goals but does not emphasize specialization by activity. Team collaboration refers to cooperative efforts among individuals across various functions rather than a strict grouping by activities, while project-based structures focus on assembling teams around specific projects rather than maintaining a long-term grouping by function.