Decentralization of Managerial Authority Page: 68
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serve as advlaory groups* ' Control over policies pertaining
to flnanolal matters I® more highly centralised than policies
pertaining to operation** Major mat tars of financial: •
nature art reserved by the board of dlreotora.
Combining decentralised authority with tha '
degree of centralised authority neoeaaary to
■ accompli eh control la ona of the major reasons '
for tha aucceae of Oeneral Motors. Perhaps tba
■ moat Important of these centralised controls
ralataa to finance. Auditing oontrola ara plaaad
at tha vary hlghaat level, In a poaltlon lnda« ' - ■■
pendent of tha management at othar levele.*
Daflnlta limitations of authority over cartaIn activities
ara lmpoeed on divisional managers. Such activities Inoluda
eapltal expenditures, union cmtracta, product Una a and
pricing of producta, bonuses, and changaa In salarlaa above
oar tain love la. Authority over thaaa aotlvltlea la centralised
in top management.
Tha fonsula for aucceaa through decentralised authority
at General Motors la llluatratad In tha following atatementai
1. Top aanagara of tha corporation have ancouragad
decantrallaattoa of authority by combining Independence In
dlvlclonal managere with coordinated activities through
centralised major policy control.
2. Tha company practice® competition between dlvlalone.
3. Centralised control la maintained over decentralised
Roonta and O'Dtixmall* c|t. pp. 210-213.
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (digital.library.unt.edu/ark:/67531/metadc107985/m1/72/: accessed February 20, 2019), University of North Texas Libraries, Digital Library, digital.library.unt.edu; .