I agree with you, I also prefer the Functional organization if you are starting up a company. Yes matrix organization seems a lot more helpful, let’s say some is stuck and needs help there are many people who can help them. However there are many strict guidelines and challenges if you are just starting up. In Matrix organization there are many managers and employee may have to report to different managers. Another major issue is communicating, because sometimes people can take forever to respond. It makes more sense for larger companies who have been in the market to have a matrix organization, not small companies who are just starting off.