Large Corporations

A couple weeks back, my boss was giving me a ride home in his car (because I don't drive), and we started to talk about big companies. He then mentioned to me how proportionally, large corporations do amazingly worse. If you imagine the amount of employees that work for Walmart put together, and all their buildings, assets, management, etc., and then you think about how large your local grocery store is, there shouldn't even be a chance for the local stores. This is so amazing because not only do the small companies stay in business, they can actually compete with large corporations!

- I must note that I use the term CEO (Chief Executive Officer) loosely. The intended meaning of the term in my context is the highest person in a company.

I did a lot of thought behind this anomaly, and then realized what is wrong with corporations. That is their organazation. As seen in the chart below, each member of the company that isn't labor or a CEO has to deal with two different aspects of their job, their employees, as well as their bosses. Between the difficulty of the two, the dealing with the employees must be less to ensure a positive revenue.












Also, if you look at the small company below, you can see how the management has a lot more time to make decisions about their employees, because the CEO has to deal with only a few different managers, therefore getting more experience with these people, and possibly gaining experience with the labor too. This link brings the CEO's down to earth with their company by far, which brings up efficiency with their corporate decisions.

Large corporations try to deal with this by adding performance reports, which supposedly bring more information up the ladder. But in fact, it just implements more work for everyone, because there is no possible way for the CEO to read all of these and clearly comprehend what's going on.

Which brings me to my point about how small companies have so much more proportional power, which is derived from the abundance of information. Employees get to know about what is going on in the top of the company and vice versa.

But then one may say "Gogleion! You're so silly! If this system is inefficient, why do CEO's make big companies?!" Well, the answer is simple: money. CEO's of large companies make far more money than ones of small companies, which is why they choose to follow this. Because of this, it also chooses the greediest CEO's for large companies, while the more modest and hard-working CEO's stay with small companies.