Internal Organization and Parkinson's Law

          We have reviewed the five basic forms of internal organization, and we have noted the differences between a centralized (tall) organization and a decentralized (flat) one. However, we  still have no basic rules to guide the organization of all business firms. This is why the management principle of minimal levels of authority is so important: The levels of authority should be limited to the fewest possible to accomplish the goals of a specific firm.
          As any firms grows in size, it adds supervisory personnel and more and more specialists to the payrolls. Usually, some of this growth is necessary; but much of it is not. If we can trust the judgement of many experienced executives and business consultants, staff additions do not always bring comparable increases in production, efficiency, or profits. In fact, many additions set the stage for Parkinson's Law, which states that "work expands to fill the time available for its completion." (Have you noticed that if you have only one hour to prepare for an exam, that's how long it will take; but if you have three hours, or six, the work will expand to fill all the time?)
          The author of this "law" was the British historican C. Northcote Parkinson, who developed it from lengthy observation of British industry and government during the early twentieth century. But examples of how Parkinsons's Law works can be found throughout our business world and our government today, too. Why should it be the case that what once took only a few people's time to accomplish now requires the efforts of many people? What causes Parkinson's Law to apply even in the modern business world?
          At least three aspects of modern business combine to complicate the matter of internal organization by bringing Parkinson's Law into play.

1.   The desire of managers to build "empires" of their departments, believing that this will increase their importance and salaries.

2.   The increased paperwork needed in modern business -- even in the hiring of employees.

3.   The failure of many managements to establish effective control in an era of permissiveness and strong union bargaining power.

Only through strong top management that is constantly aware of productivity and personnel needs can business avoid, or at least minimize, the operation of Parkinson's Law.