Final answer:
The scenario where engineers design a device not matching the customer's needs due to conflicting department goals exemplifies a disadvantage of the functional approach in organizational structure. The correct answer is option C.
Step-by-step explanation:
When engineers at Maverick Medical Devices design a medical device that fails to meet the targeted customer's desires due to conflicting goals between engineering, production, and marketing, this is an example of a disadvantage of the functional approach. This situation reflects the siloed nature of departments in a functional organizational structure, where each department focuses on its own goals, potentially leading to misalignment with the overall objectives and customer needs. To address such challenges, structured design processes and inter-departmental communication are crucial for ensuring that the various aspects of product development are well-integrated and aligned with market demands.