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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.” quote by Clay Shirky
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““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.””

Clay Shirky

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.

Key Takeaway

Balance benefits and management costs.

Themes

organization growth transaction costs efficiency

Mood

analytical strategic

Type

theoretical practical

When to use this quote

  • hiring decisions
  • team expansion
  • project scaling
  • budget planning

Key Concepts

economics management theory scale economies

Questions to Reflect On

  • When do added employees become a liability?
  • How can you reduce management overhead?
A Different Perspective

Overemphasis on benefits can ignore hidden coordination costs.

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