Article on federalism and its implications for business, applying, in part, the working definition of federalism as devised by Charles Handy. According to Handy, federalism resides principally with constituent parts of an organization, all of which grant some of that power to the center of an organization. Handy notes that this organization differs from decentralization, which implies a delegation of power from the center. The article proceeds to talk about the additional elements of subsidiarity and monitoring as they relate to the practice of federalism. After stressing that federalism is difficult to manage, Handy notes that, through federalism, companies and nations can reap the benefits of all possible worlds. They may pursue autonomy, self-governance, and innovation that correspond with independence, while simultaneously enjoying the advantages of pluralism, coordination, and scale economies that have come to be associated with organizational unity.
Handy, Charles B O'Toole, James Bennis, Warren G Dayton Hudson Corporation Barnevik, Percy Financial times (London, England) Lorenz, Christopher, 1946- Benetton (Firm) British Petroleum Company IBM ABB Maastricht Treaty (1992 February 7)
Source
Article on federalism and its implications for business, applying, in part, the working definition of federalism as devised by Charles Handy, June 3, 1993; Charles Handy Papers; Box 17, Folder 6; 6 pages
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