Creating a team from each of the functional areas for each project is called a functional organization
Explanation:
Functional organization is a structure, where the organization is divided into many smaller groups, according to the functions performed like manufacturing, marketing, distribution, accounting e t c.
The advantage of such a structure is, the company can utilise the expertise of people from each of these departments or functional areas, to help the organization to run smoothly.
By having such a structure , mistakes can be avoided and the company can function in an organized manner.