SATM 6.2.2.5 Size

A considerable amount of empirical research attempting to discover the link between contextual variables and various structural aspects of organizations. They wanted to know how variables such as origin, ownership, size, charter, technology, market, location, and dependence correlated with internal factors like specialization, standardization, formalization, and centralization.

Increased size seemed to bring about decreased centralization but increased structuring of activities (standardization, specialization, and formalization). It follows that size is a very significant variable that managers need to take into account when designing organization structures.

(Jackson, (2000) Systems Approaches to Management, Kluwer Academic / Plenum Publishers. NY. P113)