federal organization

federal organization
Gen Mgt
a form of organization structure, identified by Charles Handy, in which subsidiaries federate to gain benefits of scale. In a federal organization, the leader provides coordination and vision, and initiatives are generated from the component subsidiary organizations. Federal organization is one of the many ways in which organizations restructure in order to deal with the dilemmas of power and control. According to Handy, federal organization offers an enabling framework for autonomy to release corporate energy for people to do things in their own way, provided that it is in the common interest, and for people to be well informed so as to be able to interpret that common interest. Handy cites Royal Dutch Shell, Unilever, and ABB as exemplars of federalism.

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