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A Year with Peter Drucker - 52 Weeks of Coaching for Leadership Effectiveness by Joseph A. Maciariello

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Week 26

Centralization, Confederation, and Decentralization

Introduction

This week’s entry deals with general issues of organization with historical roots in government. Examples of centralization, confederation, and decentralization are found in various forms of government, and they have direct application to the management of organizations in all sectors.49

The American colonies were organized by the British primarily to promote British mercantile interests. The king of England appointed governors of the colonies, and most important decisions were made by the king. This is an example of a centralized or unitary form of organization where most of the autonomy and authority rests at the top.

In response to a number of laws imposing taxes on ...

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