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When Big Companies Are a Good Idea

49 点作者 kmavm超过 13 年前

8 条评论

justincormack超过 13 年前
The problem with Coase as I see it is it is a case of fitting a model to the facts, so has no predictive power at all, even if it is the correct explanation. Some of the factors are changing, as technology cuts information and transaction costs and makes markets cheaper, for example. So how much does that mean firms will shrink or grow?
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davidw超过 13 年前
Good article - more people should be aware of Coase's work. However, I would surmise that PG was talking about "you" in the sense of "a hacker someone like myself", not about people in general, many of whom should not go try and create companies.
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tlear超过 13 年前
I think my previous company did not get the memo about us all being on the same team. You never knew who were gona stick a knife in your back. My personal theory some people do better playing the game at a big corp, some do better trying to run their own thing. Neither is inherently superior. Different games for different personalities.
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dotBen超过 13 年前
<a href="http://en.wikipedia.org/wiki/Theory_of_the_firm" rel="nofollow">http://en.wikipedia.org/wiki/Theory_of_the_firm</a>
seltzered_超过 13 年前
I worked at a semiconductor mixed-signal startup - rife with control-loop theory, analog design, digital design/firmware, and lots of application support/software. They do exist. It's just very hard for them to last without eventually getting acquired by an established bigCo. But the same kind of rings true for a decent chunk of startups in the software space.<p>That said, most semiconductor startups do partnerships with bigger companies for second-sourcing or foundry help.<p>The transaction cost problem is true whether you're a startup or a big company. If anything it's better to be a highly-partnered startup than a startup-division at a big company as you may be able to avoid lots of the bureaucratic headaches the large company is accustomed to, helping to keep employees more motivated.
teyc超过 13 年前
pg was specifically addressing the issue of management that is out of touch, while Coase was explaining the role of the firm. There is no reason why these reasons couldn't co-exist.<p>The main driver behind running a startup and working in a big company is a tension between two factors: control and leverage. As the chief of a small startup, a young person exerts a great deal of control over their destiny. However, they are short of resources. Even $20k from yc only goes so far. In contrast, at a bigger company, one has to constantly fight for resources. However, when they are available, and applied judiciously, the money can go a very long way. There is also the added benefit of working with some very brilliant technical people who may have no ounce of business-sense in their bones.<p>On the far end of the scale, when one has advanced further up the rank, there is a great deal of firepower at your disposal. It is actually the same with startups. No startup can forever stay at 2 employees. In the end, there has to be sensible management in place.
dylangs1030超过 13 年前
This isn't exactly criticism, but curiosity. I would like yosefk.com to address the following:<p>1. Is the revenue generated by a company proportionate to its size? Or do smaller companies make more? Or larger companies? Comparisons would be like WePay vs. Microsoft (or, in the same sector), WePay vs. PayPal.<p>2. Are the problems he notes in a hypothetical industry dominated by small companies outsourcing exclusive to hardware manufacturing, or to all aspects of the manufacturing process?
bobwaycott超过 13 年前
tl;dr -- Big companies are a good idea because they offer employment and suit the author's nature nicely because he possesses a strong "aversion to business."<p>Starting the article with pg's question--"Why be a manager when you could be a founder or early employee at a startup?"--then going on a different tangent altogether to answer "Why do large firms exist?" never left me satisfied with the author's claim he "could fill a book explaining why" to be a manager when you could be a founder or early employee at a startup. Claiming the question of why large firms exist to be the question implied by pg's original was a logical misstep.<p>pg's question appears--to me, so obviously I could be wrong--to dispute the wisdom of working at "companies where the only way to advance is to go into management." I'd have expected a "response" of this length to somehow defend either A) going to work for companies organized this way, 2) removing companies from the discussion altogether and defending the hierarchies &#38; organizational principles behind management &#38; its being the default rungs in the advancement ladder, or D) answer why being a manager is to be preferred vs the founder or early startup employee role.<p>The attempts to explain <i>how</i> markets work to the advantage of large firms--with random mentions of economic theory peppered about--does little to explain <i>why</i> they exist this way at all. It's merely a narrative of what exists now. A better--and more thorough and compelling--article would have tackled the big question of why our markets operate in such a way as to be of greater advantage to large firms who secure resources through contractual negotiations that evince preferential treatment to larger vs smaller buyers. If everyone interested in producing a product were able to achieve the same price-per-piece when buying two pieces as buying two million pieces, this shallow argument of why large firms exists--and are a good idea--would fall flat. The transaction costs the author uses as defense of the big company are artificial--an economic barrier placed atop the market that prohibits entry of competition by securing preferential treatment for one's own company.<p>Moreover, the article never gets back to the question it begins with--<i>why work where going into management is the only way to advance?</i> This is what I waited till the end of the article to find out. Quite disappointing. I'm still wondering. I've recently started working at a company where the only way to "advance" is to be in management. Before this, I was at a small company where I felt locked in as a programmer--where my ability to build reliable software was, of course, a benefit to the company they relied on, but where in 3 years I was never once asked to "advance" in a meaningful way that didn't mean becoming a "manager". I was pretty disappointed. Even in small startups, the business-as-usual notions of managers over programmers, designers, and other productive talent prevails. This company was better than others, but was eventually undone--a rift between the managers ultimately led them to shut down the entire company and lay everyone off. Now, having moved on to a larger company where I'm now "managing", I find myself wondering why this is any better of a lock-in than my previous post--meetings, emails, phone calls, reports, productivity ... all of this shit just bores me, gets in the way of getting a task done, and offers so little value to both my team's work &#38; the company's bottom line. And of course here, as in so many other companies, advancement is tied to remuneration and other perks. But why should I put up with this shit instead of moving on? I work very hard to keep carving out time &#38; tasks on which I can program directly, but it's tough.<p>The article touches on a couple key points that (I think) it erroneously attributes to being good points for big companies--namely, trust and cooperation. Moving from a small company to a larger company--and obviously, this can be anecdotal (but I don't think it can be so easily dismissed as such)--trust and cooperation are not abounding. Larger companies divide employees into distinct departments that, rather than operate in the company's best interests, operate in their manager's interest and draw up all kinds of political districts through which it seems impossible to build trust and a cooperative spirit among coworkers. There are departments who attempt to control parts of the business for which they have absolutely no skill, training, experience, or even basic understanding. Offering to work with them to help them meet their goals goes nowhere. Large firms do not equal a sudden conversion of competition to cooperation or mistrust to trust--which the author, to his credit, acknowledges. But neither do they truly "frame things right". Where questioning why to become a manager vs a founder or early employee, pg is questioning exactly what is fundamentally flawed--working in a place where advancement equals management (and, implied I think, where management is the only way to have a voice in the operations, visions, practices, and future of the company itself). Lack of trust and cooperation is a fundamental flaw of the market itself, which big companies both exacerbate and use in their favor. To be fair, there are undoubtedly certain companies which successfully create a culture of trust and cooperation among their employees--and these are companies likely to be admired and studied as examples for others. However, trust and cooperation must be both created and nurtured. Why can't the market do this, too? And are big companies at all at fault for the lack of trust and cooperation in the marketplace? Why would a large firm seek to increase overhead through hiring if they could establish trust and cooperation among partners in the marketplace?<p>I think the answer to the question requires a careful consideration of management itself--its goals and benefits, its responsibilities and rewards. This article adds little to that discussion. Furthermore, answering the question should entail a discussion of advancement itself. If we pull promotion to management out of the equation (which we should), what are we left with? What now qualifies as "advancement"? Is it just economic advancement? Is there advancement to positions of greater responsibility, impact, input, etc., that does not equal being turned into a manager? If a company (big or small) is hiring the right people for the right jobs, does anyone really need to be a manager? Should a manager's (or other "senior" person who is in a position to dictate what is to be done) idea of what to do next outweigh the input provided by a talented, experienced person who is actually going to do the productive work? Managers excel at creating a lot of fake work for employees and otherwise wasting everyone's time. This is, in my experience, overwhelmingly apparent and exacerbated in large firms--perhaps because small firms stay away from creating a culture of managers.<p>As it is, answering the question of "Why do large firms exist?" or the author's own premise of "When Big Companies are a Good Idea" needs far more than a marginally informative retelling of how large firms behave in the market today.
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