Influence of firm size on organizational culture and employee morale

Organization size (as defined by the number of employees) has received substantial attention from researchers and management writers as a fundamental component affecting organizational design, structure and shape. Some researchers claim size influences organizational effectiveness and efficiency and some claim it does not. In this study, which was conducted in six Australian workplaces, it was found that organizational size affected a number of variables. For example, the organizational culture within the three small firms investigated was more positive; management was more consultative and employee morale was higher than in the three large firms investigated. As a result, the findings from this study indicate that in relation to a number of factors explained in the paper, larger firms may wish to emulate their smaller counterparts in order to achieve higher employee morale, and hence, organizational effectiveness.