Charles Handy article on federalism and British industry, and how federalism could be applied effectively to present organizational concerns. Handy lists and describes five principles of federalism, namely, subsidiarity, twin citizenship, interdependence, common law, and separation of powers. He proceeds to note that federalism is neither inherently good nor bad, but constitutes a form of democracy entirely appropriate for organizations in our times, which Handy states require a large pooling of shared resources for some purposes but which also desire local variety and a reasonable degree of local autonomy in their operation. Handy concludes his article stating that the machine age is passing and with it organizations suited to it. In the new industrial and organizational climate, the federalist model is more suited to the new human and community focus in business.
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