ABSTRACT
Both kinds of decentralization - federal decentralization and simulated decentralization - are organized around results. The systems structure is organized around relationships. Of all known design principles, federal decentralization comes closest to satisfying organization specifications. But it is severely limited in its applicability and has stringent requirements that must be met if it is to function. Otherwise we have to apply simulated decentralization - complex, unwieldy, difficult and far from satisfactory, but the only design principle we know for the organization of materials businesses, service businesses such as the very big banks, or government agencies. The systems structure is even more complex and difficult, but necessary to organize such multicultural enterprises as the American space programme under NASA or the multinational company.
