Something odd transpires when companies reach around 150 employees. This is the point at which businesses experience a shift in dynamics, coined as the ‘Dunbar Number’ after anthropologist Robin Dunbar. Dunbar’s theory suggests that humans can only maintain around 150 stable relationships. Beyond this, it becomes challenging to know everyone on a personal level, leading to a decline in trust and cooperation.
This phenomenon is evident in companies, where reaching the 150-employee mark often sees a move from a family-like atmosphere to a more structured, corporate environment. This transition can be difficult, with employees feeling a loss of intimacy and camaraderie. To combat this, some companies have implemented strategies such as splitting into smaller teams or creating opportunities for social interaction.
Zappos, for example, has adopted a system called ‘Holacracy’, abandoning traditional hierarchy for self-governing teams. Meanwhile, video game company Valve Corporation allows employees to choose their projects, fostering a sense of autonomy and camaraderie.
It’s clear that managing this transition effectively is vital for maintaining employee satisfaction and company culture. Adaptation and innovation appear to be key in navigating the challenges presented by the Dunbar Number.
Go to source article: https://qz.com/846530/something-weird-happens-to-companies-when-they-hit-150-people/