Parkinson's Law in Management: Why Bigger Teams Can Mean Lower Efficiency

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In recent years, many companies have expanded rapidly, adding new teams and complex workflows in response to business growth. However, some quickly discover that more staff and longer approval processes do not always lead to better results. One advertising company, for example, created a new planning department but soon found that projects took longer to approve and even longer to deliver.

This pattern is not uncommon. In fact, it reflects a deeper problem that British historian Cyril Northcote Parkinson identified in 1955. Known as Parkinson’s Law, it explains how organizations often become less efficient as they grow. This law is not about laziness or lack of talent, but about structural and behavioral patterns that slow things down.

1. Parkinson’s Law: Is This Happening in Your Company?

Parkinson’s Law suggests that work expands to fill the time and resources available. In growing organizations, this often results in unnecessary complexity and declining productivity. There are three main ways this shows up:

1.1 Unnecessary Staff Expansion

In small companies, roles are usually clear. Employees know their goals, and communication is direct. As the company grows, however, leaders often try to build larger teams. They may add new positions even when the workload does not require it. This sometimes comes from a desire to increase personal status or control more people.

New hires often end up doing repetitive tasks like formatting reports or organizing data. Meanwhile, fewer people focus on product development or innovation. The result is slower progress and longer delivery cycles.

1.2 Complicated Internal Processes

As companies expand, they create more rules to manage tasks. At first, this adds structure and clarity. But over time, too many rules can lead to delays and confusion.

When process becomes more important than outcome, efficiency suffers. Teams get stuck in review cycles or approval queues. Important work is delayed, not because it is hard, but because the process is too slow.

To solve this, we often recommend using tools like ZenTao, where workflows can be trimmed to fit each project’s needs. Some projects may not need multiple review stages. Others might need more detailed checkpoints. Flexible workflow design helps teams move faster without losing control.

1.3 Rising Bureaucracy and Internal Politics

Jack Welch, the former CEO of GE, once said that bureaucracy kills creativity. In large organizations, employees may care more about promotions and politics than the work itself.

People write fancy reports, attend endless meetings, and compete for visibility instead of solving real problems. Good ideas are lost in red tape, and the company becomes slower to respond to change.

2. How to Break the Cycle and Improve Management Efficiency

The negative effects of Parkinson’s Law are not permanent. With clear strategies, leaders can reverse the trend and build a more agile and efficient organization.

2.1 Hire Based on Real Needs and Manage Talent Carefully

Strong organizations do not rely on how many people they have, but on how well each person contributes. Before hiring, teams should ask: Does this role solve a real need? Is there enough work to justify it?

During the tech hiring boom, many companies hired developers too quickly. Now that markets have cooled, those same companies are laying people off. It is a lesson in sustainable growth.

Performance management systems also play a key role. They help evaluate each employee fairly and give useful feedback. Companies like Google and Samsung also offer flexible programs, such as innovation time or personal growth leave, to keep employees engaged and productive.

If someone is underperforming or not fully engaged, consider reskilling or adjusting their role. Make sure every person is adding value.

2.2 Simplify Internal Processes to Make Faster Decisions

Use digital tools to automate routine work and remove unnecessary steps. Define clear responsibilities for each team and role. This reduces miscommunication and avoids the blame game when problems arise.

Tools like ZenTao can help. Its process tailoring feature lets you change workflows based on project size or risk level.

• A small project can move faster without extra approvals.
• A complex project can include extra checks where needed.
• This flexibility helps companies adapt while staying efficient.

2.3 Build a Culture That Supports Action and Ownership

Culture shapes how people behave at work. If employees feel like their voices matter, they are more likely to focus on results rather than process. Promote open communication and break down silos between teams.

A good company culture does not rely on fear or control. It builds trust, encourages collaboration, and keeps everyone focused on shared goals. Get rid of meaningless rituals and focus on what helps the team succeed.

3. Efficiency Is Not an Accident. It Is Designed

Parkinson’s Law teaches us that inefficiency often grows with the organization. More people, more rules, and more layers do not automatically mean better performance.

Leaders must actively manage this risk. Use clear structures, realistic deadlines, and smart resource planning. These steps create a system that resists bloat and focuses on outcomes.

Efficiency is not just about doing more with less. It is about doing the right things at the right time, with the right people. In a competitive market, the winner is not always the largest team. It is often the team that can move fast and adapt.

When you build a system that is lean, flexible, and focused, you turn size into strength—not a weakness. And that is how you break free from the trap of Parkinson’s Law.