Decentralization of Managerial Authority Page: 58
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initiative an 3 to have awse vole a tn tht affairs
of fch« organisation is the greatest problem for
larrs Industrial organisation to solve.- •
Currant and Potential Capacities of Managers
Another factor that will influence a decision of whether
to decentralise managerial authority is the competence and
potential capacity of managers to assume responsibility,
Primary importance is placed la the chief executive, though.
If he combines policy-making with detailed control and super-
vision, if he maintains close contact on subordinates. If his
intentions are easily communicated or are known by sub-
ordinates, managerial authority will probably be highly
centralised in the chief executive. Authority may be de-
centralised, though, if the top executive prefers delegating
a large portion of his authority so that he may concentrate
on just one or two major functions of which he has superior
knowledge compared to other exeoutives•
The extent of decentralisation of authority will also
depend on the competence of other company executives and the
attitudes they have toward the top executive. ' Delegation
will more likely take place where subordinate executives
are assured of having confidence from top management.^®
The executive manpower factor needs to be given attention
before any attempts are made to decentralise. ' The number
of managers involved varies with the situation whether-tt ba
k^Dale, oj>. clt. p. 116.
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc107985/m1/62/: accessed December 14, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .