A model of classical organizational structure: A look at administrative intensity

Classic management propositions are formalized in a model giving a mathematical expression for the interrelationships of the basic elements of organizational structure: size, hierarchical levels, and horizontal divisions. One proposition derived from this model is that as the size of an organization increases, the administrative ratio increases. This is in direct contrast to a proposition from Blau's organizational theory. In the model administrative intensity decreases with organizational growth only during temporary stages of growth.