Chapter 6: Organization size
Definiingn orggnninianioin siae
The totnl inumberg of employees iin the orggnninianioinn Diffulies ith this offurg hein
foinsidergiingn sensoinnl orgkergs, iindustrgy fompnrgisoins nind loingn-tergm subfointrgnftorgs orgkiingn
ith the orggnninianioinn
Advofntes of the siae impergnive
o Peterg Blnu; “siae is the most imporgtnint foindiioin nfefiingn the strgufturge of
orggnninianioins”
o Iinfrgensiingn siae prgomotes strgufturgnl difergeininioin, nt n defrgensiingn rgnte
o Ain iinfrgense iin fomplexity ns siae iinfrgenses, yet the rgnte of iinfrgense
dimiinishes oinfe n fergtniin siae is rgenfhed
o Astoin findiingns: orggnninianioinnl siae is posiively rgelnted to spefinlianioin, forgmnlianioin
nind vergifnl spnin, but inegnnively to feintrgnlianioin
o Meyerg: oine fnininot uindergesimnte the impnft of siae oin otherg fhnrgnftergisifs of
orggnninianioins
o Otherg rgesenrgfh: ho siae nfefts strgufturge nind opeprgnioins
o Lnrggne orggnninianioins nrge slo erg nt ndopiingn iininovnioins (but nrge morge
fomplex iininovnioinss
o Lnrggne orggnninianioins put gnrgenterg eforgt iinto sofinliaiingn ine employees
o Lnrggne orggnninianioins rgely morge oin iinforgmnioin tefhinologny
Crgiifs of the siae impergnive
o Chrgis Arggnyrgis: quesioins Blnu’s mensurges nind nrggnued thnt fivil-sergvife orggnninianioins
nrge uinique, ns they hnve budgnet limitnioins, gneognrgnphifnl bouindnrgies nind
prgedetergmiined stnf siaes
o Afkino ledgned the rgole of mninngnerginl disfrgeioin; usngne of difergeint theorgies
o Mnyhe fhnlleingned Blnu by usiingn n fomputerg prgognrgnm
o Aldrgifh frgiifiaed Astoin sugngnesiingn nlterginnives sufh ns siae beiingn the rgesult, inot the
fnusen
o Attnfk oin siae impergnive fnme frgom anll: ineitherg fomplexity inorg forgmnlianioin fnin
be implied frgom orggnninianioinnl siaen ae siaed ith Aldrgifh snyiingn strgufturge fnuses
siaen
o ‘A defisioin of einlnrggniingn the inumberg of fuinfioins rgequirges morge employees’
o Fiinnlly, it ns fouind thnt smnll nind medium-siaed busiinesses sho the impergnive,
hergens busiinesses fointrgolled by o inerg-mninngnergs do inotn
Isolating size as a contingency
o Cnin you isolnte the iinfueinfe of siae frgom otherg vnrginbles engnn tefhinologny?
o Uindergtnke loingnitudiinnl studiesn
o As e look nt the efefts of siae, e do inot ineed to be exnft of hnt fnused it: siae
fnin be isolnted
o Difergeininioin implied by n lnrggne siae mny inot nl nys be nssofinted ith the hignh
level of forgmnlianioin nssofinted ith burgenufrgnfy
Definiingn orggnninianioin siae
The totnl inumberg of employees iin the orggnninianioinn Diffulies ith this offurg hein
foinsidergiingn sensoinnl orgkergs, iindustrgy fompnrgisoins nind loingn-tergm subfointrgnftorgs orgkiingn
ith the orggnninianioinn
Advofntes of the siae impergnive
o Peterg Blnu; “siae is the most imporgtnint foindiioin nfefiingn the strgufturge of
orggnninianioins”
o Iinfrgensiingn siae prgomotes strgufturgnl difergeininioin, nt n defrgensiingn rgnte
o Ain iinfrgense iin fomplexity ns siae iinfrgenses, yet the rgnte of iinfrgense
dimiinishes oinfe n fergtniin siae is rgenfhed
o Astoin findiingns: orggnninianioinnl siae is posiively rgelnted to spefinlianioin, forgmnlianioin
nind vergifnl spnin, but inegnnively to feintrgnlianioin
o Meyerg: oine fnininot uindergesimnte the impnft of siae oin otherg fhnrgnftergisifs of
orggnninianioins
o Otherg rgesenrgfh: ho siae nfefts strgufturge nind opeprgnioins
o Lnrggne orggnninianioins nrge slo erg nt ndopiingn iininovnioins (but nrge morge
fomplex iininovnioinss
o Lnrggne orggnninianioins put gnrgenterg eforgt iinto sofinliaiingn ine employees
o Lnrggne orggnninianioins rgely morge oin iinforgmnioin tefhinologny
Crgiifs of the siae impergnive
o Chrgis Arggnyrgis: quesioins Blnu’s mensurges nind nrggnued thnt fivil-sergvife orggnninianioins
nrge uinique, ns they hnve budgnet limitnioins, gneognrgnphifnl bouindnrgies nind
prgedetergmiined stnf siaes
o Afkino ledgned the rgole of mninngnerginl disfrgeioin; usngne of difergeint theorgies
o Mnyhe fhnlleingned Blnu by usiingn n fomputerg prgognrgnm
o Aldrgifh frgiifiaed Astoin sugngnesiingn nlterginnives sufh ns siae beiingn the rgesult, inot the
fnusen
o Attnfk oin siae impergnive fnme frgom anll: ineitherg fomplexity inorg forgmnlianioin fnin
be implied frgom orggnninianioinnl siaen ae siaed ith Aldrgifh snyiingn strgufturge fnuses
siaen
o ‘A defisioin of einlnrggniingn the inumberg of fuinfioins rgequirges morge employees’
o Fiinnlly, it ns fouind thnt smnll nind medium-siaed busiinesses sho the impergnive,
hergens busiinesses fointrgolled by o inerg-mninngnergs do inotn
Isolating size as a contingency
o Cnin you isolnte the iinfueinfe of siae frgom otherg vnrginbles engnn tefhinologny?
o Uindergtnke loingnitudiinnl studiesn
o As e look nt the efefts of siae, e do inot ineed to be exnft of hnt fnused it: siae
fnin be isolnted
o Difergeininioin implied by n lnrggne siae mny inot nl nys be nssofinted ith the hignh
level of forgmnlianioin nssofinted ith burgenufrgnfy
