Organizational Size

can be defined as a structural property (like degree of formalization) or a contextual variable (like demand). It's a property at the interface between internal structures and the environment. Often it is treated as an independent variable that shapes and determines other structural variables (Scott p. 258). Size often characterizes the scale of the work being conducted.

Size is measured in several ways -- floor space, sales volume, clients served, net assets, etc. Most common is the number of participants, which is often most relevant in dealing with structural properties and work output. But sometimes it's difficult to separate participants from non-participants, and productivity differences can make comparisons difficult.

Size, Bureaucracy, and Differentiation

Problems Resulting from Size
Katz and Kahn (1978 p. 107-108) note some problems with adding people to organizations:

1. Loss of the primary group in motivating people to achieve organizational goals (loss of group identity)
2. Inadequacies and errors in communication
3. Weakness in integration and utilizing skills, knowledge and experience of members (through routinization of work).
4. Social traffic and congestion.