It is true that Metcalfe’s law is more tuned to the digital world such as bitcoins and cryptocurrency. But when it is applied to an organization, it can creates havoc to the smooth flow of the functional process. Essentially Metcalfe law state that In telecommunications and computer networks the idea of Metcalfe's Law is employed to illustrate a network's worth. According to Metcalfe's Law, the influence of a network is related to the square root of the network's total nodes. A network, for instance, has an inherent value of 100 (10 × 10) if it has 10 nodes. Computers, servers, or connecting users might be the end nodes.
Over the lapse of time, Metcalfe law evolves into a more business oriented approach than the mere computer based aspects. Amazon might not be assigned the top auction website but it definitely have the most daily visiting users. In this sense, it becomes strategically hard to reproduce this interconnected networking as the networking force is so geared up which eventually force out competitors. A simple visual graph can be demonstrated overtime and the impact become apparent.
The benefits of small-sized team are described below.
Rapidity and Adaptability
In huge organizations, it's common for employees to be unaware of the duties of their coworkers. The more people there are, the longer it takes to coordinate and handle tasks. Although there are more links, their quality is declining. People who are unaware of their surroundings may work on jobs that are uninteresting, useless, or redundant.
The capacity to swiftly and effectively coordinate is a small team's key benefit. A team of five to ten persons can be connected considerably more easily. These groups react to changes swiftly. Knowing what their coworkers are doing and how the product is moving, employees jump right into duties. The information and knowledge sharing in this kind of team is open, and reliable support is developed.
Human Relationship
People can more easily become close in a contained environment and foster a caring environment. Smaller teams are more cohesive, more empathetic, and have stronger interpersonal relationships.
In a bigger organization, employees can get lost. New hires take longer to adapt, interpersonal relationships deteriorate as the team grows, and team members stop being as encouraging of one another.
Minor downsides
Small teams lack the resources necessary to produce complex goods. They are compelled to use more power, be more inventive, and take on additional risks in attempt to compete with giant firms.
A small team's flexibility may not always be a plus. Building rigorous processes and adhering to them for years is impossible due to the product's changing requirements, and minor issues can cause the product's development to stall. Therefore, it is crucial to have a head who can coordinate the operation and point everyone in the proper direction, even for a small group of two people.
What size should a team therefore be?
The CEO of Amazon, Jeff Bezos, famously said: "If two pizzas can't feed a team, then it has too many employees."