The organization I work for is primarily organized in a functional setup. The company is primarily separated into 4 functional teams: quality, process, operations, manufacturing. Employees of each functional area work together quite a bit to accomplish specific tasks. This corporate organization is surprisingly rigid for such a small company.

I personally believe that the company would benefit tremendously from adopting a more matrix style organization. One of the major short comings of this particular company is difficulty in anticipating issues or problems along the product life cycle. When a problem does arise, it is often not apparent to members in quality until reported by someone in process or manufacturing after it has occurred. This is why a matrix organization where there are cross-functional teams would benefit to minimize hiccups before they become major issues.

I personally enjoy working in a functional structure because it helps me gain skills in my particular area of work. But for the overall efficiency of the company that I am working for, I believe more cross communication would be of tremendous benefit.

https://en.wikipedia.org/wiki/Matrix_management