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What is a "silo" (economics)

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Matthias Winkler (Wen Kele)

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Jun 22, 1999, 3:00:00 AM6/22/99
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I wonder if someone could explain to me what is understood by a "silo"
when speaking of organizational models.

Apparently this is a structure where directives are passed on from top
to bottom as opposed to knowledge sharing or teamwork. Right?

How was this expression coined? Is it because (in a corn silo) you fill
in something at the top and take something out at the bottom whilest the
content of the silo sits in layers and is invisible from outside and
cannot be accessed other than at the bottom?

How wide-spread is this expression, i.e. would people in an enterprise
management context always understand it without further explanation,
e.g. in a sentence like "in hierarchical, functional organization models
individual objectives would be narrowly defined within silos"?

Thanks very much in advance!

Matthias

Murray Arnow

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Jun 22, 1999, 3:00:00 AM6/22/99
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Your analogies are interesting and probably the intent of the usage which
may be based on ignorance. A silo stores fodder. The contents of the silo
is more typically grass-like plants such as alfalfa. These plants
are not easily digested by livestock. The purpose of a silo is to allow
the fodder to ferment. The fermentation produces a more easily digested
silage and ruckus juice.

A better choice for your usage would be grain elevator. It functions in
the manner you described.


John Packer

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Jun 23, 1999, 3:00:00 AM6/23/99
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In organizational structure parlance, business are organized by
functional areas (e.g. sales, engineering, manufacturing, support) are
said to have a silo structure. The term probably comes from the physical
appearance of silos - I have also heard this structure called stove
pipes - which are beside each other but people in each group is
insulated from the others.

This is a process centred structure, and is appropriate in organizations
which can achieve lower cost through sharing functions. For example the
lab, x-ray, and nutrition functions in a hospital are shared by the
various products (maternity, pediatrics, day surgery).

The term "silo" has a connotation of inadequate communication between
people in one functional area with people in the other "silos. In the
traditional hierarchy, only the leaders of the silos formally
communicated among themselves and the president.

The other form of organization is product centred structure. Here for
example, each product has its own sales, engineering, manufacturing,
support personal dedicated to that product which results in better
communication, flexibility, and responsiveness.

A hybrid structure is a "matrix" organization. Here, staff formally
report to a functional area and have "dotted line" responsibility to a
product - or vice versa.

John Packer

John Holmes

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Jun 23, 1999, 3:00:00 AM6/23/99
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Murray Arnow wrote in message <7ko583$33m$2...@eve.enteract.com>...

>Matthias Winkler (Wen Kele) <wen...@gmx.de> wrote:

>> How was this expression coined? Is it because (in a corn silo) you fill
>> in something at the top and take something out at the bottom whilest
the
>> content of the silo sits in layers and is invisible from outside and
>> cannot be accessed other than at the bottom?

>Your analogies are interesting and probably the intent of the usage which


>may be based on ignorance. A silo stores fodder. The contents of the silo
>is more typically grass-like plants such as alfalfa. These plants
>are not easily digested by livestock. The purpose of a silo is to allow
>the fodder to ferment. The fermentation produces a more easily digested
>silage and ruckus juice.
>
>A better choice for your usage would be grain elevator. It functions in
>the manner you described.

I don't think it is true outside the US, that a silo can contain only
green fodder. A quick check of a few dictionaries shows silos also for
grain, cement and radioactive waste, and also missile silos.

What you refer to as grain elevators are, in Australia, always called
silos in common speech, although (in more formal language) some of them
are administered by a Grain Elevators Board.

On those farms I have seen where silage is made, it is done in a pit
covered with plastic sheeting. I have have only ever heard these called
'silage pits', never silos.

I'm not sure what the Spanish usage of silo is (for that is apparently
where we take the word from), but the original Greek 'siros' meant 'a pit
for corn'.

Regards,
John.


Murray Arnow

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Jun 25, 1999, 3:00:00 AM6/25/99
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In article <7kve1g$mlo$1...@perki.connect.com.au>, "John Holmes" <hol...@smart.net.au> wrote:
<...>

>On those farms I have seen where silage is made, it is done in a pit
>covered with plastic sheeting.

That makes it pretty difficult to get to the ruckus juice.

John O'Flaherty

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Jun 25, 1999, 3:00:00 AM6/25/99
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Murray Arnow wrote:

If it's less than 25 feet deep, couldn't you use a straw?
john


JB

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Jun 28, 1999, 3:00:00 AM6/28/99
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Sure, a straw would work to a depth of 34 feet, if you've got the lungs
and taste for it. --JB

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