Structure And Structure: Size And Organizational Structure

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The topics that are to be discussed in this assignment are the following: Influence of size on structure: Size and complexity Size and formalization Size, known as the number of employees in a company, is a determining factor when attempting to understand an organization’s structure. With regard to complexity, a larger organizational size translates to a higher degree of attention when dealing with communication, coordination and control issues. A larger organization is directly proportional to the complexity of managing the organization and organizational change. A bigger size requires a higher number of managers to keep a balanced span of control. This means that increasing a firm’s size likely enhances vertical differentiation due to a…show more content…
The effect of size on other structures within an organization are not consistent. In general, larger organizations are found to be more complex and formalized. But the intensity of this relationship varies. 3.- Both, the article and Robbin’s book, expose a positive relationship between size and complexity. Generally, size will increase an organization’s complexity. In addition, in both sources we can see that size is a determining concept in vertical differentiation. The relationship between size and formalization as described in the article, differs from the one in the Robbin’s book. On the article, no clear relationship is found between size and formalization. Sometimes a positive relationship between both variables is found, but many others isn’t. In contrast, by reading Robbin’s book a clearer positive relationship between these two variables. The bigger the organization, the harder it is to monitor everyone, and formalization increases. 4.- The findings of the article and information in the Robbin’s book are evidently visible in the case. In the 1980’s, the Appex corporation was described as a rapidly growing organization. As the case progresses, the increase in organizational size does have significant influence on its’ complexity and…show more content…
In addition, there were problems with resource allocation as well. Ghosh once again felt the need for a change in organization structure, leading to changes in the organization's complexity and formalization. The implementation of the divisional structure increased complexity and formalization once again, and generated positive results. However, problems related to resource allocation persisted and as divisions grew, they faced structural questions just like Appex did when it was a young company. At this point Ghosh realized that given the dynamics of Appex, such that it constantly grew in size, in terms of customers and personnel, the would always be a need for change in formalization and complexity, and it would be best if this change was implemented regularly. This goes hand in hand with the information in the Robbin’s book, which clearly established a positive relationship between a company’s size, complexity and need for formalization. The case ends with a mention of Appex’s acquisition. It is safe to assume that the acquisition will lead to an increase in size, and will require more formalization, further substantiating the relationship established in the Robbin’s

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