The size of an organisation is an internal (contextual) factor that determines which type of structure is more effective. The size of an organisation is normally measured by the number of people working for the organisation in a single location.
Size has effect on structure. In general, as size increases, the organisation tends to become mare formal and complex to have more rules and more formal positions, ranks, sublimity, and sections within sub-units. As the organisation expands in size by adding more employees, it becomes a "decentralized bureaucracy".
It is not difficult for you to realise that the structure for a of two hundred employees may loot be-adequate if that expands to six hundred employees located in several different cities. If the same number of departments is maintained, the span of control for many managers will significantly increase.
However, note that size does not affect structure at constant rate. For examples, when an organisation with 10000 employees should be considerably less than if those 1000 were added to a that has only 500 employees.
Finally, you have to bear in your mind that organisational size is an important factor but not a sufficient condition to influence the design and structure due to the related effects of technology and environment.
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