How does growth in size usually change a firm's structure?

Question

Accepted Answer

B. It becomes more mechanistic as systems are added

1. Smaller companies tend to follow the more organic model, partly because they can.
2. Decentralized decision-making is easier with fifty employees, and fewer people means less specialization.
3. As a company grows it becomes more mechanistic, as systems are put in place to manage the greater number of employees.
4. Procedures, rules, and regulations then replace flexibility, innovation, and independence.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.6 Organizational Design Considerations_

Answer

It stays organic no matter how large it becomes

Answer

It becomes more organic as employee numbers rise

Answer

It loses its chain of command once it grows large