Decentralization of Managerial Authority Page: 52
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major study of corporation federalism by recording op*rations
in th* General Motors Corporation in 1&6* Although federal
decentralisation has grown alowly* eoapanles that have tried
it were eminently auccessful* Ona of tha raasons that it haa
groan slowly is tha la ok of sxperlcnee managements - have had
Anothar reason why fedaral decentralisation has groan
slowly is tha concern top management has for mlatakee that
say be aada by junior executive a whan they a squire authority
to make deoielona* This rsaaon is often invalid upon
For example* tha chief exeoutlvc in one company waa
worried that if authority waa delegated to a purehaaing
agent* ooatly errora would result* ipon eloser examination*
it was revealed that tha Boat expeneive error the purehaaing
agent eould suika would ba #100*000* but it annually ooat tha
company $11*2*000 in forma that needed to be filled out*
executive time spent In shacking the work of the purchasing
agent* and all the other precautions taken to insure agalnat
any poaaibla error on his part, there ware additional
poaBible losses because of purchasing decisions that were
delayed* thus* tha possible losses that eould be sustained
from independent deelslon-making were not equal to tha
expenaee and loasea tha corporation incurred resulting from
the oheckqp procedure on the purchasing agent*
^Lawrence A* Apploy* Management In Action (Sew fork*
1956)* pp* 278-279#
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/56/: accessed March 26, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .