The policy was laid
out Edison and announced March 15, 1915. broke down
TAE Inc. into separate divisions, each the responsibility a
division manager. The divisional structure was modelled the
United States government; the central administration was the
federal government, each division was state and the division
manager was the state governor. has shown that the
multidivisional, decentralized structure came response to
problems running diversified business and remained the
standard business organization the twentieth century.
The evolution the modern business organization has
been chronicled Alfred Chandler.products produced would better managed somebody
knowledgeable about the business. The divisional policy was
intended move decision making closer the market and give
middle managers the opportunity exercise their special
technical marketing skills.
Beginning with Pont and General Motors, Chandler has
described how big business America embraced this
13
structure. made sense that products
as different cement and primary batteries should marketed
by independent organizations. The divisional policy was a
response the perceived weaknesses TAE Inc; corporate
dinosaur was not going remove Victor from its commanding
place the phonograph industry. The central
. Edison's policy diversification came
slightly before Pont and GM, his move divisional
structure precedes theirs several years
