Another limitation of the functional organization is that there is increased chances of conflicts among department’s heads due to various reasons like ego, same position, budget and much more which in turn can hamper the progress of the company. According to Griffin (n.d) Territorial disputes affects the proper functioning of the organizations hence leading to failure. The same qualities that lead to increased production and specialization lead to complicated communication and decision-making processes. Since the functional units are not accountable to each other and share decision-making power, the process is more bureaucratic and tends to take longer.
While the flow of communication within a department is expedient, communication between departments and synchronization of work and project completion is more difficult to manage. Finally, too much focus leads employees to neglect the larger view of the company and its objectives.Bobera (2008) puts forward a view that sometimes, in projects carried out by this form using the functional design structure, neither individual is completely responsible for the project. The lack of this precision usually means that the project manager is authorized and responsible for some part of the project, but some other person is authorized for other parts.
This is obvious lack of coordination which is very important in realization. In the functional approach of organizing the project, all the power for decision -making is doubtlessly concentrated in the functional department while in the project approach, it is with the manager. This power, which can be very important in relation to the project destiny.
However power sharing becomes difficult between the project manager and the functional manager for they both exercise supreme authority over their members thus it becomes difficult for member of staff to listen to their leaders for they in none who is in direct control.