Size Matters—Its Intertwined with Culture

Company size influences company culture and vice versa. Small companies are more like small towns or even extended families, where working relationships are often also social ones. There are few secrets in small companies Because of simpler organizational structure and fewer personnel, small companies are usually able to make fast decisions and react quickly to changes in the marketplace. Small companies generally have a strong customer focus. When they are not, it s often because they have a culture left over from a previously downsized, much larger company. 

In addition to being influenced by size, company cultures often reflect the dominant professional group, for example, technical or manufacturing or sales, when the company came into being or went through a reduction in size. Cultures also reflect the characteristics of the ownership, too, whether they are a founding family, institutional investors, or foreign nationals. 

Some of the more frequently encountered cultural varieties are reviewed in the following paragraphs. 

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