A large org is a totally different beast from a small org, and yet they seamlessly transition into each other. So, a large org is dysfunctional when viewed through the lens of a small org. A large org is also dysfunctional when it is run like a small org, as is a small org when it's run like a large org.
I think people just have unrealistic expectations about humans ability to manage anything. We label things as dysfunctional, yet dysfunction is the norm. I think it gives a slightly warped sense of what the norm is since it implies that things ought to be functioning properly but they aren't. When really it's usually just par for the course.
