What is a potential downside of functional organizations with regards to project coordination?

In functional organizations, each department operates independently, focusing on its specific functions such as marketing, finance, or production. This structure can lead to difficulties in coordinating projects that require input and collaboration from multiple departments.

When a project spans various functional areas, the lack of formal interaction structures may hinder effective communication and cooperation. Team members from different departments may prioritize their departmental goals over the project objectives, leading to challenges in aligning efforts and resources. Consequently, this can result in delays, misunderstandings, and inefficiencies in achieving project deliverables.

The other options, while relevant to functional organizations, do not directly capture the issue of project coordination as effectively as the correct choice. Inconsistency in decision-making may occur but is not specifically tied to the organization's structural approach impacting project alignment. Difficulty in specialization is counterintuitive since functional organizations typically promote deep expertise within functions. Lack of management oversight can happen in any organizational form, not just functional ones, and does not directly address the inherent coordination challenges.