Final answer:
The correct answer is C) Functional structure, where employees are grouped by their specific functions or roles within an organization.
Step-by-step explanation:
An organizational structure where people with similar occupational specialties are put together in formal groups is called a Functional structure. Option C) Functional is the correct answer to this question. A functional structure groups employees based on their functions or roles within the organization, such as marketing, finance, or operations. This contrasts with a team-based structure, which often involves bringing together people from different areas of expertise to work on specific projects or goals.
While the team-based structure gains popularity due to the changing workplace and need for nimble responses to technology and globalization, it does not always ensure increased productivity, which is why studying the effectiveness of different organizational structures remains an active area of research.