Discuss TWO (2) reasons why the growth in a firm’s size often cause communication to deteriorate. (6 marks).

Increased Complexity: As a firm grows in size, the structure of the organization becomes more complex with multiple layers of hierarchy and departments. This complexity can lead to communication breakdowns. Information has to pass through various levels before reaching the intended recipient, and each level may interpret the information differently, leading to miscommunication. Furthermore, the existence of various departments can lead to silo mentality, where departments do not communicate effectively with each other, leading to a lack of coordination and understanding.

Physical Distance: Another reason is the physical distance that comes with a firm's growth. As a firm expands, it may open offices in different locations, even in different countries. This geographical dispersion can make regular face-to-face communication difficult. While technology can help bridge this gap to some extent, it cannot fully replicate the effectiveness of direct, in-person communication. Time zone differences can also hinder real-time communication. This physical distance can lead to employees feeling disconnected from the organization, and important information may not reach all employees in a timely and effective manner.