Why do silo effects arise within organizations?

Silo effects arise within organizations primarily due to the highly specialized nature of work and differing departmental objectives, both of which limit communication and collaboration between teams.

When workers become highly specialized in their specific roles, they often lose sight of the broader organizational goals. This hyper-focus on their own tasks can lead to a lack of understanding regarding the capabilities and objectives of other departments. Such isolation can foster an environment where departments operate independently, hindering knowledge sharing and collaboration that are crucial for achieving overall organizational success.

Additionally, when departments have different incentive schemes, it can further entrench siloed behavior. If workers are motivated by individual or departmental performance metrics that do not align with the organization's overarching goals, they may prioritize their own success over cooperative efforts. This misalignment can lead to suboptimal decisions that benefit one department while potentially harming others or the organization as a whole.

In sum, both the specialization of workers in their roles and the presence of varying incentives contribute significantly to the development of silo effects, making the combined reasoning of options A and B the correct assessment of the situation.