Question

Discuss some of the problems that might be encountered when a functional organization develops new products.

Answer 1

The following problems might be encountered if a new product is developed in a functional organization:

1. In a functional organization the team is divided on the basis of their functions and thus they view their contribution to the project in terms of their own technical expertise. Many times they are focused only on their own performance.
2. If any conflict arises between the team it will take long time to get resolved because of the hierarchical structure. This will slow down the whole project
3. The decisions made about the product might reflect the interest of the project manager’s own functional area instead of the best interest of overall project.
4. In such a structure it is often observed that then customer focus is not considered during product development.
5. The product will be made with more focus on the functional aspect rather than the project or customer requirements.