Decentralization of Managerial Authority Page: 97
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decentralization of managerial authority extended to managers
over those activities and functions* Certain function* lend
themselves aore readily to decentralization than do others*
The first function to be delegated by the chief executive-'
la likely to be the production function. It may be widely
decentralized* Authority over the finance function, on tha
other hand, la almost always highly centralized* Authority
over personnel activities it usually centralized while
authority over sales actlvitlea la often decentralized.
It Is more difficult to achieve the autonomy of da*
centralized authority when a corporation la organized on
a functional basis as compared to one organized on a federal
or product-line basis. Federal organization combine a several
functions imder the authority ©f tha unit manager. The
chief characteristic of federal decentralization la that
It organize a tha various activities into separate and' dis-
tinct product businesses that have their own Independent
narkets and are responsible for making a profit,
Management phlloaophy can be either conducive toward
decentralization or It may <3 la courage any attenpta to dele-
gate authority to lower management levels. There are two
primary organizational philosophies, between which there
are various gradations of decentrailzed authority* The
phlloaophy of the emeutlve that deaanda extreme centralized
authority may be coiapared to the authority «©acen%rat#d In
a dictator while the phlloaophy of those advocate a of
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/101/: accessed March 23, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .