¶ … large firm and small firm on several characteristics. A small firm usually consists of 50 to 200 employees, while a large firm can be considered consisting of more than 1000 employees. The firms with employees consisting of 200 to 1000 can be considered mid sized. For the research, I was able to find two firms: one large public sector firm, which deals with delinquency & crimes, referred to as the Bureau of Crime and Delinquency and one small firm employing 35 employees in a nearby store. This small firm sells local made furniture, including beds, chairs, tables, and other household wood products. In the following, we are going to compare these large and small businesses on several criteria as shown below:
Organization Structure and Management Style
Large firms and small firms are different in the sense that small businesses and large businesses face several of different problems. At the same time, in case of the common set of problems, it is very unlikely that these common problems are equally important and pressing for each of these businesses. It is certainly reasonable to believe that some problems cause greater difficulties for a small business than they do for large firms. For example, the limited resources of small firms compared to those of large organizations make them more susceptible to changes in the external environment.
In case of out chosen companies, I was able to find a clear pattern on management styles. The large firm, The Bureau of Crime and Delinquency, was less threatened by many of environmental, changes, so its management spent less time scanning the environment in an attempt to anticipate and adjust to this turbulence (Atuahene-Gima, 1996, 98). On the other hand, the management in the small local store was much more concerned about the environmental changes. This means that environmental events that represent serious threats to a small firm may be considered unimportant to a large one.
The other difference in the management style is reflected in the ways the attitudes and personal traits of executives are shaped in small businesses and large businesses. In small local firm, I found management taking personal interests and responsibility for meeting the objectives of the company. On the other hand, most of management responsibilities in the large firms, such as Bureau of Crime and Delinquency, are assigned to lower level employees so that they can carry out the objectives of the firm. Management's main task in this public organization is to initiate strategies and control lower level employees how they set the strategies.
Atuahene-Gima (1996, 96) contends that management styles are not the same for small firms and large firms. For example, in small business the personality characteristics such as the need for achievement and the need for control, as well as abilities such as promoting ideas, are believed to be critical in leading a robust management style, while in large firms, management style is mostly impersonal. Thus, in large firm, management plays a different role than it plays in the small firm. Similarly, because of their unique traits and characteristics and other attributes that managers in large organizations consider important are likely to be different from those small business executives. This was evident in my research as I found that management in the Bureau of Crime and Delinquency was less concerned about personally taking any responsibilities and changes, while the management in the local store was open to new ideas and usually spent time with other employees.
The other difference that lies in management style in small business and large business are based on the ways these businesses look at their competition: Management in small business can usually take quick actions to meet pressures and problems facing their businesses. On the other hand, management in large business is more confined in setting their internal strategies and structures.
With respect to organizational structure, small firms are more flexible and informal than the large firms (Burns and Stalker, 1961, 56). As in researching the Bureau of Crime and Delinquency and local small firm, I found that Bureau of Crime and Delinquency was vertically structured with a rigid pattern of roles and responsibilities, while the local small stores had an informal structure with roles and responsibilities.
As we found that it was very difficult to bring changes in Bureau of Crime and Delinquency, while in small firm management pushed for change and often carried several changes in its business procedures and methods. This often is attributed to the newness of the small organization and its need to respond to rapidly changing situations and conditions. Large firms have predefined...
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