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" "The functions or job contents necessary to reach objectives must be defined. This step is governed by two precepts.
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.