Decentralization of Managerial Authority Page: 96
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the corporation; the kinds of activities and functions
conducted in the enterprise; the philosophy of management
toward decentralisation of authority} the ability of man-
agers to accept authority; external force a auch as government
restrictions# economic conditions, competition, and trad#
unionism} and the extent to which control can be leaiittal&eft
over decentralised authority.
30TBral large ootapanice decentra Use managerial authority
by increasing the span of control of manage ra • Whan nan-
age ra haw# large numbers of subordinat& & repo^rtlng to th«ia
the only alternative for then la to delegate authority,
Subordlnatea are then placed In the position to make de-
cisions. Xanagerial apan of control should be extended to
the point where advantagea of delegation are finally out-
weighed because of the Increaelng costs of additional
aupervialon tM when communication difficulties arise froa
too winy subordinates reporting to the manager.
Decentralisation of authority la often accompllshad
through reducing the alse of the decision-making unit. Man-
ager a are then closer to the point where decisions need to
be made. Decision quality will lag?rove aa complexity and
magnitude atre reduced through delegation, Th® expense of
coordination is reduced because managers have greater
autonomy to make decisions,
fhe quantity and importance of activities and funetiona
conducted In an organisation determine the aaouat of .
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/100/: accessed March 25, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .