Decentralization of Managerial Authority Page: 67
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Osaeral Motors is divided Into wwril divialone «ch
as Bulck, Chevrolet, Pontlae, Frig Ida ire, and Alllaon. they
are operated similarly to independent bueineaeea but con- ■
form to broad- corporation pollciee. Each division designs.,
manufacture a, and aalla tha products it makaa. £eoh division
purchaeea materiale and parta from other divisions or from
outaida sources, 13mra is freedom to make purchase* wherever
tha division sen find euitable products at tha 1ovaat price.
Each division baa authority to hira and train employeea,
davalop and maintain individual line and staff organisations,
and daoida what manufacturing methods and proeaasss will ba
used.V Several divisional managers at Oeneral Motors
eatiswted that 9$ par cent of decisions reflecting upon :
operations were under the diviaional manager*a area of au-
Decentralisation of authority ia pushed aa far down in
the division aa possible* the philosophy of decentralised
authority permeates the organisation becauee of the leader-
ahip of division managers. In fact, many top executivea
come from divisions that have given them experience in man-
age rial dutiea through decentralised authority.
The top level of management has centralised authority
over main policy formulation. Una executivea are respon-
sible for most of the policy-making while etaff departments
Hater P. Drucker, Concent. g£ t&g. *°rk
1956), pp. U6-50.
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/71/: accessed March 19, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .