Final answer:
Functional grouping refers to the degree to which work units are grouped based on functional similarity or similarity of workflow.
Step-by-step explanation:
The degree to which work units are grouped based on functional similarity or similarity of workflow is known as functional grouping. Functional grouping involves grouping together work units that have similar functions or workflow patterns.
For example, in a manufacturing company, work units such as production, quality control, and logistics might be grouped together because they have similar functions in the production process.
This type of grouping helps to streamline processes and optimize efficiency within the organization.