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As companies get larger the likelihood that they are well managed decreases significantly.
by boucher 15y ago
As companies get larger the likelihood that they are well managed decreases significantly.
- barry-cotter 15y agoA moment's reflection refutes this. In the world's most advanced economies most people work in and for large companies because they have outcompeted the small companies that weren't as good. Seriously, how many 100 person companies does it take to be as capable as IBM?
- aristidb 15y agoTrue, but managing larger companies is also inherently harder, maybe that's what the grandparent intended to say?
- barrkel 15y agoThere's a difference between (a) good management, (b) returns to scale, and (c) gains from specialization and division of labour. What you see most in large companies in advanced economies is (b) and (c); in so far as you get (a), I would argue much of it comes from applying specialization to management itself: doing the kind of strategic management that is not possible in small companies dominated by tactical concerns.
- rgraham 15y agoI don't think your claim of most people working for large companies is quite true. Maybe I just feel it is misleading. http://www.sba.gov/advocacy/7495/8420 http://www.sba.gov/advocacy/7495/8420