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Why Functional Organizations Work

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Why do some companies choose to structure themselves in a functional fashion instead of after projectized environments?

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Solution Summary

Organizations that produce standard products tend to be structured as functional organizations. However, as technology changes and our economic environment moves, products need to be updated and shift along with the times, allowing for more project-related work. This excerpt explains the benefit of working in a functional organization and why this type of structure is so common in project management.

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People and businesses need to evolve with the times. For instance, it would be difficult to run a business that heavily depends on the transmission of electronic correspondence as a method of communication for its staff members, if it doesn't have access to the most high-tech software available to ensure delivery and readability. ...

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