Functional Organisation:
Functional organization is a type of organizational structure in which the activities of an organization are grouped based on the functions they perform. In this type of structure, similar or related activities are grouped together to form different departments or units. Each department is responsible for carrying out a specific set of functions, such as finance, marketing, operations, human resources, etc.

Grouping of Activities:
The grouping of activities based on functions is a key characteristic of functional organization. It involves categorizing and organizing various tasks and responsibilities according to their functional areas. This means that all the activities related to a particular function are grouped together and placed under the authority of a specific department or unit.

Advantages of Grouping of Activities:
There are several advantages of grouping activities based on functions in an organization:

1. Specialization: Grouping activities by function allows employees to specialize in specific areas. This can lead to increased efficiency and productivity as employees become experts in their respective functions.

2. Coordination: By grouping activities based on functions, it becomes easier to coordinate and integrate the efforts of different departments. This helps in ensuring smooth workflow and avoiding duplication of work.

3. Clear Hierarchy: Functional organization provides a clear hierarchy of authority and responsibility. Each department is headed by a manager who is responsible for overseeing the activities within that function. This helps in establishing clear lines of communication and accountability.

4. Skill Development: Grouping activities by function allows employees to develop and enhance their skills in a specific area. This can lead to career growth opportunities and increased job satisfaction.

5. Economies of Scale: Functional organization facilitates economies of scale by consolidating similar activities and resources. This can result in cost savings and improved resource utilization.

Conclusion:
Grouping activities based on functions is a fundamental aspect of functional organization. It helps in organizing and managing various tasks and responsibilities in a structured manner, leading to increased efficiency, coordination, and specialization within the organization.