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Home > QFINANCE Dictionary > Definition of federal organization

Definition of

federal organization

General Management

combining of subsidiaries for benefits of scale a form of organization structure 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. 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. Royal Dutch Shell, Unilever, and ABB are exemplars of federalism.

Definitions of ’federal organization’ and meaning of ’federal organization’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’federal organization’ and other financial terms with our online QFINANCE Financial Dictionary.

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