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" "Organization studies usually are devoted to the study of large-scale enterprise because information about larger companies is generally more widely recorded and more readily available. Because of this, more emphasis needs to be placed on organization planning in the smaller firms. It was at the suggestion of Lt. Colonel Lyndall Urwick that AMA undertook this study of companies of different sizes, as a means of improving our knowledge of organization—a field in which he has made major contributions. Many of the larger companies face small-scale problems in their subsidiaries and small units. However, those starting work in the large firm find it difficult to visualize the evolutionary process on which their company's present operation is based. Therefore, it may be of interest even for large companies to study the various stages of growth, up to and including, of course, their own present stage of development.
Ernest Dale (Febr. 4, 1917 - Aug. 16, 1996) was a German-born American organizational theorist, Professor in Business Administration at and the , and consultant, known for his early work on comparative management theory in the 1960s. He was board member with Olivetti, Upjohn and Renault, and consulted companies such as Du Pont, I.B.M. and Unilever.
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In and of itself managerial decentralization is neither desirable nor undesirable. We must apply certain criteria in order to evaluate it. One such criterion is economic efficiency: At what point in the management hierarchy and by what individual is a particular decision made most efficiently? Is a particular function exercised or a service performed more cheaply if it is "centralized" or "decentralized"? It is impossible to say in general that either centralization or decentralization is more efficient.
This section will deal with the mechanics of organization—the actual processes or methods of creating and changing the company's organization structure. The problem is essentially that of best utilizing the people and resources presently on hand, as contrasted with the building up of an organization from scratch, described in Part I.
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