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Organizational Size

Organizational Size. Does size make a difference? January 25, 2002 Reference: Burton and Obel, Chap 5. How to measure size. Assets, sales, revenues, etc. For org design, the number of people is the best measure; modified by the skill level of the people.

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Organizational Size

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  1. Organizational Size Does size make a difference? January 25, 2002 Reference: Burton and Obel, Chap 5

  2. How to measure size • Assets, sales, revenues, etc. • For org design, the number of people is the best measure; modified by the skill level of the people. • Orgs with highly skilled individuals operate as if they were larger. • Embedded in the OrgCon

  3. Size and decentralization • Larger organizations should be more decentralized…why? • Large private (eg, owner operated) organizations tend to be more centralized than publicly held organizations.

  4. Size and formalization • Large organizations are more formalized…why? • Professional organizations are less formalized at the task level…why?

  5. Size and configuration • Large organizations are more likely to have a divisional configuration…why?

  6. Size Issues • Economies of scale • Information and coordination • Control • Flexibility • Resistance to change

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