Arnold Kling, Present at the Destruction | Library of Economics and Liberty

Anthropologist Robin Dunbar famously suggested that humans can interact personally in group sizes no larger than about 150. In the late 1980s, Freddie Mac went from being what I call sub-Dunbar to super-Dunbar. When an organization is sub-Dunbar, it can operate informally. If I want to make a decision, I can call all of the people who might be affected. When an organization is super-Dunbar, I no longer know everyone who is going to be affected by my decision. A super-Dunbar organization needs formal procedures or else suffers from widespread miscommunication and employees working at cross purposes.

Source: Arnold Kling, Present at the Destruction | Library of Economics and Liberty

It is possible for a super-Dubnar organization to continue operating informally. It can compartmentalize, so that the effects of decisions remain sub-Dubnar. Or it can establish a system of shared values and common patterns of behaviour, a culture so to speak.