Organization Quote by Clay Shirky
““An organization will tend to grow only when the advantages that can be gotten from directing the work of additional employees are less than the transaction costs of managing them.””
About This Quote
Source Book: *Cognitive Surplus*, 2010
Organizations grow only when benefits of adding workers outweigh the costs of managing them.
In simple terms: Growth depends on cost‑benefit of adding staff.
Balance benefits and management costs.
Themes
Mood
Type
When to use this quote
- hiring decisions
- team expansion
- project scaling
- budget planning
Key Concepts
Questions to Reflect On
- When do added employees become a liability?
- How can you reduce management overhead?
Overemphasis on benefits can ignore hidden coordination costs.