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Why We Need to Build Human-Scale Organizations
Saved by sari and
The size problem is made more complex by two more factors. One is that as the size of the operation increases, “dis-economies” of scale begin to creep in, as economists since Alfred Marshall in the 1920s have suggested. For example, as a firm adds more and more employees, it needs to add more managers, and ever-more complex systems of internal cont
... See moreRelatively quickly, economies of scale and sublinear scaling, reflecting the challenge of efficiently administering a large and complex organization, dominate innovation and ideas encapsulated in superlinear scaling, ultimately leading to stagnation and to mortality.