Small vs Large Organisation
What are advantages and disadvantages of large versus small organisations?
Reading & Writing course C
Language & Learning Unit
03rd Sept 2010
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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In addition, partners have joint control and authority over many aspects of business therefore the company can succeed in a variety of business fields. Large businesses also have a clear advantage when a great number of customers are willing to buy standard products and prefer low cost and efficient delivery. The ability of large firms to provide efficient customer service and repairs is better than small ones since there is a greater numbers of employees and more specific departments. Above all, the ability to expand, to enter the international market of large businesses is much greater than small businesses. Large firms are better equipped to handle onerous government burdens such as import and export controls, and they can also avail themselves of more options in terms of location and shifting of funds to subsidise abroad(Czinkota,1992:108).They create a large number of jobs for people as well as contributing to local governments through business taxes. For example: HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa(HSBC,2010). It provides financial services and creates many jobs for people worldwide.
In conclusion, this essay indicates the approximate number of employees in each small or large business which makes very different