An Entrepreneur Employs 20 People in a Simple Structure

Essay

An entrepreneur employs 20 people in a simple structure. However, the company will likely employ over 200 people in production, sales, engineering and administration within a few years due to the growing success of the company's new products. The entrepreneur likes the simple structure and wants to avoid other forms of departmentalization. Explain to the entrepreneur why his company would be more effective through other forms of departmentalization as it grows larger.