In my opinion, it depends on the goal of the company, as well as the size. A small company may function best as a functional organization. That way, every employee has their own department focus. A smaller company may not have many projects going on at once. Therefore, a functional organization may be most suitable in this case. As the company expands, inevitably there will be work on even more projects. As such, it may be beneficial to have someone from one department work on a project from other departments, as well as focus on their own. This allows the company to fuse everyone’s talents on different projects to reach the best results.

Therefore, I agree with what some people have said on this thread that for startup companies it may be best to have a functional organization. However, the bigger the company, the better option may be to have a matrix organization for the company.