Final answer:
True; Functional structures can lead to the development of 'silos,' which is true and represents barriers to cross-departmental collaboration and efficiency within organizations.
Step-by-step explanation:
The assertion that functional structures may lead to the development of 'silos' within an organization is true. In the context of organizational structures, silos refer to a situation where different departments or sectors do not share information freely with other parts of the company, potentially leading to a lack of synergy and inefficiency.
This silo mentality can impede collaboration, innovation, and can also hamper the ability of a company to respond quickly to changes in the marketplace or address cross-departmental challenges effectively.