What is a challenge when an organization expands its product range under a functional structure?

When an organization expands its product range under a functional structure, one of the significant challenges it faces is difficulty in communication and coordination. In a functional structure, the organization is divided into specialized departments based on different functions such as marketing, finance, operations, and human resources. Each department operates independently, focusing on its specific tasks and objectives.

As the product range expands, the complexity of the organization increases, leading to a greater demand for interdepartmental communication and collaboration. Functional silos can develop, where departments become more focused on their own goals rather than the organization's overall objectives. This can result in misunderstandings, delayed information flow, and a lack of alignment between different departments. Teams may struggle to coordinate activities effectively, impacting overall efficiency and responsiveness to market changes.

The other choices pertain to conditions that do not generally arise as a direct challenge from expanding the product range under a functional structure. Increased employee benefits and reduced production timelines are not typically direct consequences of this structural challenge, nor does a functional structure lead to simplified task management when product complexity increases.