Developing an Organization Into a Small Or Large Business

There are many differences between small and large organizations. Within large organizations are economies of scale. These economies adjust slowly to change and are managed by a bureaucracy of leadership. In a small organization much of the bureaucratic sluggishness is not a problem. Small organizations are able to be much more flexible in this way and adjust with the times at a much more rapid rate. On the other hand, larger companies can have a much further reach than small. However, this ideal is rapidly changing as globalization becomes easier and easier. Currently it is very easy to mistake some small organizations as larger because of the presence they have on the Internet. 

Larger companies also tend to take a top-down approach and apply the vertical authority to leadership. This is definitely a characteristic of a large organization. Small businesses tend to be much more horizontal and flat in leadership and delegation. These develop organically as the organization grows among the small group. I have seen it happen in my own business where we each figure out what our strengths are and take responsibility for those things. Then we would hire people in the areas of expertise we were lacking better accomplish our vision. This organic structure differs greatly from the mechanistic and highly complex nature of the larger organization. Policies are strictly written and often they are confusing and you wonder who wrote what and what the purpose is. Conversely, these policies and rules give a strength and stability to an organization and if nothing else contribute to its longevity. This creates a much more stable market for growth as well as job security. 

Local businesses do better as small organizations. The reason for this is on a local level, they can provide a higher level of service to their customers. It is because of this service that customers continue to return and ‘shop-local.’ Staples is a great example of a company that does well as a large organization. There is such a huge amount of inventory and so many stores that in order to have some kind of control they must have mechanization to a certain degree. No one expects good service, just find what you need and get out of here. A good example of a hybrid company is the movie and entertainment industry. There are so many small organizations that contribute to the larger it is nearly impossible to control every little part. It is made up of both organic and mechanized vertical leadership.