Final answer:
The issue where departments within an organization operate in isolation is known as siloing. It results in a lack of collaboration and inefficiencies within the organization. The correct answer to the question is C. Siloing.
Step-by-step explanation:
The phenomenon of functional units in an organization isolating themselves from others is referred to as siloing. This term describes a situation in which departments or groups do not share information, resources, or support with each other, leading to a lack of cooperation and inefficiency within the company. It contrasts with the idea of teamwork and collaboration, where different departments work together towards common goals. The term siloing emphasizes the division and insulation similar to grain silos that store different products separately.
Siloing can manifest in various forms such as withholding information, duplicating effort, and unnecessary competitiveness between departments. This behavior can ultimately undermine an organization's overall effectiveness and inhibit innovation and growth. It often stems from a breakdown in communication and a culture that promotes or permits such divisions. To mitigate siloing, organizations can focus on building a stronger internal culture of collaboration, improving cross-departmental processes, and promoting shared goals and values.