Decentralization in a Wider Context

by James Hund



What happens when the Organization Man meets decentralization? Experiences of firms that have decentralized reveal that, while it is no cure-all, it may accelerate the rise of bold, gifted men to the top. Further success may well depend on. increased attention to the organization's social and political environment. Research in the social sciences has ever been used as justification for specific courses of action in the cognate applied areas. Management as a synthetic art has drawn from them all and practitioners are increasingly aware of the potential impact of the total environment surrounding their organizations. Further rationalization of a wide range of business operations is promised by the application of mathematics, for example, in operations research. One concrete example of managerial reorganization flowing from both social science research and hard necessity is decentralization. In their attempts to use efficiently a scarce economic resource and to add significantly to this resource, managements in the larger enterprises have presented themselves with a dilemma.

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