Which arrangement allows for grouping employees based on product lines?

The divisional arrangement is specifically designed to allow organizations to group employees by product lines or services. In this structure, each division operates semi-autonomously and is responsible for its own resources, operations, and profitability regarding a specific product line. This enables greater flexibility and focus on different market segments, as each division can quickly adapt to changes specific to its product without needing to coordinate across the entire organization.

In contrast, other organizational structures have different focuses. The functional arrangement organizes employees based on specialized functions, such as marketing, finance, or human resources, which may not align with specific product lines. A team-based approach prioritizes collaboration among employees across various functions to achieve a common goal, but doesn't inherently group employees by product. Holacracy structure emphasizes distributed authority and self-management, often leading to a non-traditional form that doesn't specifically group employees around products. Thus, the divisional arrangement is the most suitable choice for grouping employees based on product lines, enhancing performance and accountability within each division.