SECTIONAL TRANSACTIONS —F*. 413 
Monday, September 9. 
AFTERNOON. 
Discussion on Problems of amalgamation and decentralisation (2.45). 
Mr. L. Urwick, O.B.E.—Executive decentralisation with functional 
co-ordination. 
Organisation may be regarded technically or politically. Necessity for a 
technical approach. The nature of responsibility : its relation to (a) power, 
and (6) authority. Practical reasons for decentralisation: (a) the time 
factor; (6b) the space factor; (c) psychological factors. Distinction 
between executive and policy-making (administrative) responsibility. 
Growth of functional specialisation: its inevitability. Need for co- 
ordination of functional methods. Reconciliation of these two tendencies 
the central problem in modern business organisation. Failure to recognise 
the nature of the difficulty : failure of combinations for this reason. Tenta- 
tive attempts to meet the situation. Committees, standard practices, staff 
and line, etc., etc. Where a new duty arises the only ultimate solution is 
to define that duty and to assign it to individuals, properly selected and 
suitably trained. Inevitable that business organisation will evolve towards 
a true system of ‘ staff’ positions and relationships as distinct from either 
‘line’ or ‘ functional’ positions. Organised ‘ staff’ training an essential 
corollary of this development. 
Mr. T. G. Rosz.—Some cases from the experience of a management 
consultant : Decentralisation in Small Undertakings. 
(a) Head-office in London—Works in provinces——Necessity frequently 
arises for head of business to work from London whilst manufacturing 
is carried out in provinces to instructions received from head office. London 
is primary centre of sales activities; place of manufacture usually unim- 
portant, except in certain cases where raw material supplies decide location. 
Management difficulties arising from this form of divided operation. 
(6) Financial control from London—management and manufacturing 
activities carried on in provinces.—Difficulties here arise from those con- 
trolling finance being out of touch with current working conditions. Loss 
of local good-will and esprit de corps. 
__(c) Decentralisation of management in group of rationalised small firms.— 
Difficulty of retaining individual good-will of member firms and at the same 
time loyalty to wider policy of combine. Methods of retaining management 
_ control from headquarters of combine. 
Dr. K. G. FENELON. 
Commercial management films: illustrating training in retail selling. 
Commentary by Mr. CLiFForD J. Harrison (5.0). 
Wednesday, September 11. 
Discussion on The place of the individual business in a planned economy 
(10.0). 
Mr, A. P. Younc, O.B.E.—Industrial freedom within a system of 
planned economy. 
This paper deals with the broad human problem of building an ordered 
and balanced economy within an ordered self-governing society, without 
