Organisation size
6 important questions on Organisation size
What are the points in favour of the size imperative?
2. Increasing size is associated with greater specialisation and formalisation
What are the points against the size imperative?
2. Size is related to structure, but does not necessarily cause it
3. Size is the result, not the cause
What are the characteristics of a small business?
2. Low formalisation
3. Low differentiation
4. Fewer barriers to communication
5. No agency relationship
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What are the reasons for downsizing?
2. Computerisation and automation
3. Technological obsolescence
4. Declining profitability
5. Information technology and middle management
6. The realisation that size of itself does not bring advantages
7. Changes in strategy
8. Changes in structure
9. The rise of outsourcing
What are the benefits organisations hope to gain from downsizing?
2. Less bureaucracy
3. Faster decision-making
4. Smoother communications
5. Greater entrepreneurship
6. Increased productivity
What is survivor's syndrome?
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