Decentralization of Managerial Authority Page: 63
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As decentralisation of control increases, there it an
increasing aeperation of operative control and admlniatratlve
control* T«p executives of largo corporations ars than
chiefly concerned with tha administrative controls over their
corporation'• work* Tha amount and tha a cope of da legation
ha a to Inoreaee aa tha corporation grows* Soma exeoutlves,
though* cannot delegate without losing control over activities
Centralised control may be provided for In aeveral
1* A company may have what la called centralised pre*
grearning. Top level executives establish company objectives
for production by consulting interested divisions so that a
logical relationship la maintained to sales* return on ill*,.,,...,
ve a twenty and inventories that have to be carried* Performance
standards are established for each division* lack division
operates under four eeonomlo factorsi (1) business cycle
variations# (2) long-tern growth# (3) •Mpttttlea* and
(It.) seasonal fluctuations* the planning of goals
la dene■centrally with the various divisions being oonamllad*
2. Divisional manager a may be denied the authority to
make certain basic decialona such as prices of prddufisi/.'
capital expenditures, salary changea over a certain level#
union contrsete, and bonuses. ^ :
. '■$« Centrallaed control may alao take the t&m o# pro*
vlding general staff aervlcea at the home offiee regarding
(Mew York, 1957). PP. 136-13?
Ralph C. Davis, Industrial Qrmmtmtlm Management
■ " , 136-1 '
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc107985/m1/67/: accessed December 18, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .