Excerpt from Choice of the Organization Structure: A Framework for Quantitative Analysis of Industrial Centralization Quantitative analysis of centralization/decentralization problems has so far mainly centered around the question of how decentralization might be achieved without departing from the system optimum, involving decomposition techniques of linear and nonlinear models. Positive effects, besides division of labour, of an application of the decentralization principle to a firms organization were not taken into account. In order to do so, a decision model for a hypothetical industrial organization has been developed, leading to a comparison of the effectiveness of various more or less decentralized organization structures. The problem appears to be one in capital budgeting, where management is required to generate information of sub-unit performance through a heuristic routine. System alternatives may be ranked by one or more evaluation criteria, the one with highest rank, compared to present achievement, indicating steps toward desirable organizational change of the system. For simplicity's sake, the model, in a first stage, has been conceived as static and deterministic. This paper is partly based on the author's habitation theses (14), submitted to and accepted by the Department of Economics, University of Munich, July 1969 and February 1970, respectively. Present research has been supported jointly by Technical University of Berlin and the Ford Foundation. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the

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