6 ms·
Maybe that's the natural size for a company and growing beyond that is simply an aberration!
by xutopia 10y ago
Maybe that's the natural size for a company and growing beyond that is simply an aberration!
- gluczywo 10y agoIt might be the natural size optimal for efficiency but not for survival (in the natural selection sense). The capacity of an organization grows with headcount even with diminishing efficiency per capita.
- azernik 10y agoThe "natural" size of a company is determined by the relationship between transaction costs and the costs of organization. See this seminal paper for a fuller exploration of the topic: http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937.tb00002.x/full http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937.... I would not be surprised, though, if there is a sudden increase in organizational costs above a certain threshold due to the limitations of human social capacities.