A mathematical explanation of why corporations almost necessarily must become stupid and incompetent as they grow. See also j.mp/hehgooglers cc
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- "They very nearly rule the world, you know. They are doing something more efficiently than anyone else."
They have cut out all that inefficient compassion and social benefit stuff.
The point is valid, though; a cheater who is consistently stupid still won't get ahead... and as I said, the model seems fundamentally inaccurate to me.Jul 10, 2012
- "...it limited [each corporation] to a very specific maximum life span and to very specific purposes (such as building a specified structure), after which it was disbanded."
Can we point this out to the Tea Partiers the next time they talk about respecting the wishes of the Founders? This sounds like a tradition worth returning to. (Oh dear, I'm advocating a return to tradition. Does this make me a conservative?)Jul 10, 2012
- I think that 13 levels of management is proof of incompetence. Not surprisingly, A implies A.Jul 10, 2012
- Do any corporations have that many levels?Jul 10, 2012
- www.jstor.org/discover/10.2307/27800836?uid=3739568&uid=2&uid=4&uid=3739256&sid=56300894943 that heiarchical governance often fails.we might be able to find some natural experiments. For example, it should not be too dificult to determine the different proportions of people inside and outside of an organization who believe the organization is blundering and/or malicious as the size of the organization changes. Also, there is a strong implication from the first paragraph ofJul 10, 2012
- One of the simpler features of mathematical biology is 'scaling laws': for example, how the ratio of height to weight of a land mammal changes as the animal gets larger. There could be some scaling laws that govern, e.g., the fraction of workers in a company that belong to 'management', or the amount of time a typical worker spends on email, as a function of the number of workers. Some of these things would be fairly easy to do experiments on. Probably someone already has.
Here's a blurb on scaling laws in biology:
just to give the flavor. There are much more substantial things to read out there, but you can probably imagine some analogies to corporations.Jul 10, 2012