A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

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Edgar Schein of MIT has argued that shared assumptions, often based on similar backgrounds and experiences of members, form around functional units in an organization. This leads to what are often called stove pipes or silos, in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments. This erodes communication because functional groups may have not only different goals but also differing meanings of words and concepts.

A Major Disadvantage of the Functional Organizational Structure Is That