Final answer:
The structure that arranges services and departments according to their function is known as a functional structure (Option B).
Step-by-step explanation:
A 'functional' structure arranges services and departments according to their function, enabling specialization and efficiency within an organization. In a functional structure, an organization is divided into departments or teams that specialize in certain areas, such as marketing, finance, human resources, and operations. This specialization allows for a greater focus on specific tasks or services, leading to efficiency and expertise within each functional area.
Also, in a functional structure, employees are grouped together based on the function they perform or the service they provide. This allows for specialization and efficiency within each department, as employees have similar roles and responsibilities.
Thus, the correct option is B.