Why large organisations always fail

The huge difference between the large business corporations of today — which effectively set the economic scene for the whole world — is that each of them only have one ambitious leaders at the top. Bearing in mind that every hunter-gatherer group depended on having at least one ambitious person per ten or twelve mature adults, then where are all the ambitious males in a modern corporation?

They are, of course, scattered about at all levels within a large corporation — indeed, in every very large organisation — for example, the UK civil service, or the National Health Service. All the ambitious males, frustrated by lack of sufficient routes to the very top do the next best thing and build up their own departments in order to gain personal power — and, of course, earnings.

Ever since the beginning of civilization abut 8,000 years ago its by-product, empires, have never lasted for long. Internal inefficiency grows, as does dissention between frustrated males. Their demise is inevitable. A warning sign to prime ministers and chief executives? Not that you’d notice so far.

2 thoughts on “Why large organisations always fail

  1. Large organizations always fail ??!!

    I got news for you. All organizations fail. Large, small or medium. They fail. In fact, I got further news. All things fail. Even protons decay after a fairly long bit of time.

    Now the interesting question is: Why do we have organizations at all? That question was most elegantly answered the brilliant English-American economist Ronald Coase. The short answer is “transaction costs”. He asked why firms exist. Why do firms employ people instead of just getting things done through contractors, etc.

    The size of the firm — and its longevity — can be understood as a function of the transaction costs that arise from doing what it does. See Coase’s 1937 article “The Nature of the Firm” for more. https://en.wikipedia.org/wiki/The_Nature_of_the_Firm

  2. And with ecommerce and firm to firm net connections many of the transactions costs which led to large firms might diminish, ergo might lead to less need for certain types of large firms.

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