Error when reading master activity type

What causes this issue?

You have entered a business process or cost center as the sender (or it
was proposed by the system), which does not correspond to the master
cost center. Your data entry profile specifies that an activity
allocation is generated between the master cost center and the sender.
The necessary activity type has not been defined in the employee's HR
master data.

How to fix this error?

Enter a master activity type for the employee in the Time Sheet
Defaults infotype (0315).

Error message extract from SAP system. Copyright SAP SE.