Small vs Large Organisation Essay

1356 Words Jan 25th, 2011 6 Pages
What are advantages and disadvantages of large versus small organisations?
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Sherin White
Reading & Writing course C
Language & Learning Unit

03rd Sept 2010
1165 words

What are the advantages and disadvantages of large versus small organisations?

Porter, Lawler and Hackman (1975) state that organisation is a social entity, existing in order to achieve certain goals, involving specialisation and having some degree of permanence. It is composed of two or more people but the actual number and the way in which they are organised into groups vary from one organisation to another therefore creating the differences between small and large
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Due to the dimensions, large businesses have many problems in management as well as in many other issues. Having differences in attitudes, values or perceptions, disagreements about needs, goals, priorities and interests can create conflicts and disputes between employees. Sizani(2010) demonstrates that conflicts and disputes occur more frequently in large organisations than in the small ones. As a result of being running by more than one owner, the decision-making process is time-consuming. In addition, a larger business is less flexible than a small one. According to Dlabay, Burrow and Kleindl (2009:134), large businesses cannot serve customers where the number of products and services needed is small or the requirements are too specialised for a large business to make a profit. A Large business also requires a well organised structure in order to control and make the best use of workforce and resources. Therefore inadequate organisational structure and lacking of clarity in roles and responsibilities might cause serious problems for large businesses. While having some inconveniences in management and organisation, large businesses have a large number of advantages which small businesses cannot have. The capital of a large firm is considerable for the reason that it is generated from partners altogether. Besides this, decisions made by
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