Question

The size of management can range from one person in a small organisation to hundreds or thousands of managers in multinational companies. Explain (150 words).

Answer 1

The size of management depends on the legal form of the business. The smallest legal form of a business is sole proprietorship, in which only has one manager or the owner himself/herself. As a business grows, it will be expanded by finding more partners to invest in the business. Thus, the legal form of the organization will be transformed into partnership. In this form of business, the size of management will be larger as there will be functional managers who will manage the operation of the business, such as marketing department, human resources department, finance department, operation department, etc. If the business runs well, then it will be expanded again by selling shares either privately or publicly to obtain more capital. At this point, the business will open more branches in the country where it is operated. Therefore, the size of the management will be larger again as each branch will have the managers to manage the operation. As the business grows, it can expand to foreign countries, by acquiring or establishing new subsidiary company. The managers will be hundred or even thousand who are hired by the company to manage its operation globally.