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policy of decentralised managerial authority through pro-
duction divisions etreaaee daeantrallcad operetlone and
decentralised authority with coordinated control over eeml*
autonomous dlvlelone halag retained in tha top management
level of tha corporation. According to General Motore,
thla policy me ana that managera of oparating dlvlelone ara
subject to broad oorporata policy but ara laft with tha
authority to make decision! according to how thalr division
ia organized.
Several advantagea tha company haa realised from de-
centralisation ara aa follows!
1. There la greater apaad In decision-making* ■
2* thara ara fever confllete in da el el on-making between
the operating dlvlaione and top Management*
3* There la a lack of political maneuvering in the
organisation beeauae eeoh manager haa a feeling of being
treated fairly In hie aaeoeletlon with top exeeutlvee, and
he haa confidence thet when a job la done well It will be
appreciated*
U« There la more democracy and informality in management*
$• There la no gap between the organisation*a top
management and subordinate manage re in the company*
6* A large reserve of managerial manpower la available
for promotion*
?• Weak manager a are detected by reviewing results
from aeml-independent competitive dlvialona*