Grouping of the activities on the basis of Products is related to:

Divisional Organisation

The correct answer is Option (4) → Divisional Organisation.

Grouping of the activities on the basis of Products is related to Divisional Organisation.

In a divisional structure, the organisation structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit.
Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organization grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure.