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When there's multiple people, departmentalisation happens naturally, even in co-ops. It's the nature of it and helps play to people's strengths. One group handles accounting (or for larger groups, accounts receivable and payable). One handles misc aspects of the business/mission. Another handles IT. In smaller orgs, there's massive overlap. And sometimes the "group" is ultimately just one or two people doing a fuckload.
But too much middle management just slows things down.