The paper reviews literature on the effect of size on organizational effectiveness. The paper concludes that the success of organizations to a very large extent depends on their ability to right size and combine the benefits of small and big companies. The paper therefore recommends that Organizations should have a “big company/small company hybrid” that combines a large corporation‟s resources and reach with a small company‟s simplicity and flexibility. Size should be managed effectively to empower workers and improve the competitiveness of organizations.