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Definitions: Organizational Size, Complexity, Formalization

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This 4 page paper defines and discusses the three organizational terms in the title. Examples are provided as appropriate. 1 Table included. Bibliography lists 5 sources.

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4 pages (~225 words per page)

File: MM12_PGortrm.rtf

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number of employees the organization has (Burton and Obel, 2002). Using this criterion, we find that boundaries are set - employees are part of the organization and everyone else is outside the organization (Burton and Obel, 2002). While the number of employees is a gauge of size, organizations are also measured by other criteria, such as the assets the organization has (Burton and Obel, 2002). Organizational size can also be determined by the number of facilities the corporation has in the world. Or, the size can be determined by the total annual revenues of the firm (Burton and Obel, 2002). One author suggested that the "organizational will be determined by the optimal mix of activities inside the organization (hierarchy) and activities outside the firm (market)" (Burton and Obel, 2002). This last is a way to determine the optimal size of the organization (Burton and Obel, 2002). As an example, we can compare United Parcel Service (UPS) with FedEx using the most recent fiscal year data. $ mil. Sales Net Income Employees UPS $36,582.0 $3,333.0 384,000 FedEx $29,363.0 $1,449.0 195,838 (Source: Williams, FedEx, 2005; Williams, UPS, 2005). UPS transports more than 13 million documents and packages every business day (Williams, UPS, 2005). They provide services to 1.8 million customers each day across the U.S. and more than 200 other countries (Williams, UPS, 2005). The company has a fleet of more than 88,000 motor vehicles and about 600 jet aircraft (Williams, UPS, 2005). FedEx is the worlds #1 express transportation company They deliver about 3 million packages each day across North America (Williams, FedEx, 2005). FedEx has different divisions that deliver smaller loads and urgent packages (Williams, FedEx, 2005). UPS is the larger of the two regardless of criterion used. However, in the last fiscal year, sales growth at ...

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