Decentralization of Managerial Authority Page: 69
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Johnson and Johnson Company
Largely as a result of decentralisation of managerial
authority, sales at Johnson and Johnson Coapanj grew from
twenty Billion dollars In lf32 to 2l*3 million dollars in
The extent of decentralisation practiced In th* Johnson
and Johnson Company has been called "extended autonomy**
This company's plan of decentralisation of authority goes
farther than product division®. Johnson and Johnson Company
la composed of many unite that operate aa legal prof 1 hand-
les® Independent entitles. Each unit la operated and managed
separately. The manager of the unit la responsible for all
functions and activities auch aa product design, plant con-
struction, industrial relatione, and Marketing. The unit
manager has the full authority of email plant managers or
To illustrate how much authority has been delegated to
managers, General Johnson, chairman of the board, aent •
new man to Ira&ll and Argentine to establish a South''Aaterican
factory for the company. During thirteen years, General
Johnson had written Just twelve letters to the man and six
of those letter® mm notes wishing the manager a a $fy
Johnson and Johnson Coapaay is organised intothlrty-
two operating corapanles• Tkm various company submit
-r-c — :i
George P. Smith, "How Much Decentralisation.1*; Pun'a
Review and Modem Industry. LffI (Jftly, 1955), 31~3^- -
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/73/: accessed March 22, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .