Functional organizations

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Discuss the circumstances under which you think functional organizations will work best.

Sources:
http://www.npd-solutions.com/orgstructure.html
www.pmforum.org/pmwt03/papers03-04more.htm
Under Functional Organization, there is the standard pyramidal structure with the top management at the top and the lower management spreading out down the pyramid. Functional organizations are organized according to technological disciplines and the organization is usually broken down into different functional units, such as engineering, ...