Explain Why Managerial Capacity Might Limit a Company's Growth

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The Answer is Managerial capacity refers to the skills and experiences that are necessary in any organization in order to manage it well. While it requires reasonably good managerial capacity to start any organization,and to keep is successful,it probably becomes all the more challenging when an organization grows. To begin,a larger organization probably would require more of the top manager's time,leaving less to take care of some of the other important things that must be done in the organization. Also,a larger organization might require skills and experiences that go beyond what might be required to manage a smaller organization. It may be more complicated to deal with larger,and more,suppliers,customers,financial institutions,etc.that are related to managing a larger organization. Finally,it might be that there is more stress associated with managing a larger organization. The added stress can interfere with good management.

Explain Why Managerial Capacity Might Limit a Company's Growth

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