Decentralization of Managerial Authority Page: 70
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annual sale a forecasts to the home office in.law Brunswick,
lav Jereey* Th hone offica controls general policies over
labor relatione and capital Investaents* Otherwise, managera
are left free to oaks decisions over their unite.
Several other eaae studies are preaented to demonstrate
to the reader how decentralisation of authority ia applied
in different ooatpanlee*
In sose inetanoea it ia desirable for a coapany to carry
on certain aotlvitiea with decentralised authority and othera
highly centralised* For example, the Borden Company conducta
ita buaineaa with what it cells a flexible operating plan*
fhla requires the conduct ©f the company's
buaineea on a local eoranmlty baaia wherever
practical, withoutoentfilittd direction- .
■; if conditiona make this necessary* Wherever the
: '>• business^ is localised, 1* *u, where it serves ...
local cuetoaara *nd depends mainly upon local
. suppliers, control is vested in local management? -
: but In other phases of the company1 s activities^'
■ ■ ■'■ where close coordination is eaaential for
efficient country-wide operation, centralised
management is preferred# • . • An example of cen-
tralized control, aa exercised in several divisions,
may be found In the coapany* a evaporated ssilk
operations* Borden planta in about a dosen atatea -
■ manufacture a product that la sold on a nation*
wide baaia, and the direction of production and
distribution would not be lap roved through de- ;
centralisation* In fluid-sdlk and Ice-cream . .A;,,
.-divisions, however# there ia a different situation ■■
. -A/that lends itaelf adailrably t# decentralised
./^operation* Every adlk market la unique; it Ma' .■
^Lula JL A* Vlllalon, Mana«e ent Mem and Their Methods
(Sew.-Sork, 1&9) pp* 15*2«lffJ*
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Kirkpatrick, Thomas O. Decentralization of Managerial Authority, thesis, 1958; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc107985/m1/74/: accessed March 18, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; .