Problem:
According to the text, using functional structure is where departments are established (Allen, Attner & Plunkett, 2013). By recognizing what resources are needed, what services are rendered, and resources are used, the art of putting a group together works. If an organization has an area that creates or repairs merchandise, it would only be smart to have a customer service team within that department to handle inbound customer calls or a data entry team who enters the data that others need to complete their jobs all these positions need to work in the same department.
How important has the communication function been in the functioning of these groups? Every organization must deal with communication of necessary information. As the number of individuals in a group increases, the number of possible communication paths grows exponentially. Is a management hierarchy the only structure that can meet this communication need?