If the Silo Effect Is a Consequence,why Do Companies Organize

question 1

Multiple Choice

If the silo effect is a consequence,why do companies organize by business function?

• A)Because specialization allows companies to be more efficient.
• B)Because one person completing all tasks of a process is more efficient.
• C)Because functional organizations can more easily downsize,minimizing labor costs.
• D)Because it's always been done that way.

---

Definitions:

Optimal Sequence

The most efficient order or arrangement of steps or actions to achieve a specific goal.

Total Flow Time

The cumulative amount of time taken for a unit of work or a product to flow through a system, including both processing and waiting times.

Fixed Order

A purchasing strategy where orders for goods or materials are made in predetermined quantities, regardless of current demand or inventory levels.

Processing Times

The amount of time required to complete a specific operation or task, including preparation, processing, and finishing times.