Answer:
The one issue that arises when organizing around hierarchical functions is the dilution of information caused by the absence of direct communication with the overall boss.
Explanation:
This problem is more pronounced when it takes an organization a longer time before initiating hierarchical functions. Employees who have grown used to communicating directly with their bosses will now be distanced from them because direct reports to the overall bosses are no longer permitted. Instead, each functional head is expected to coordinate their group information, have it thoroughly filtered before allowing the overall boss to access it. One advantage is that functional hierarchies eliminate information overflow. Unfortunately, some bosses do not feel comfortable, at first, when their organizations commence hierarchical organization of business functions.
