What is Charles Handy's Federal Organization Model?

The video explores Charles Handy's concept of the federal organization, highlighting its dual nature of being centralized yet decentralized. It uses Berkshire Hathaway as a prime example, showcasing its small core and autonomous subsidiaries. The video contrasts this with many multinationals that impose strict controls on subsidiaries, deviating from Handy's ideal. The federal structure is defined as having self-governing units with minimal central control, leading to success and low infrastructure costs.

What is the main paradox of the Federal Organization as described by Charles Handy?

• It focuses on micromanagement.

• It lacks any form of leadership.

• It is both highly centralized and decentralized.

• It has a large core and many rules.

How does Berkshire Hathaway exemplify a Federal Organization?

• By focusing on short-term profits.

• By allowing subsidiaries to operate autonomously.

• By imposing strict rules on subsidiaries.

• By having a large central core.

What is one of the few rules Warren Buffett imposes on his subsidiaries?

• They must report daily earnings.

• They should inform him of potential negative press.

• They need to follow a strict budget.

• They must compete with each other.

Why do many multinationals fail to achieve the ideal Federal Organization structure?

• They have too many autonomous units.

• They focus too much on innovation.

• They lack a central core.

• They impose excessive constraints and rules.

What is a key benefit of a true Federal Organization structure?

• Increased dependency on the core.

• Minimal interference from the core.

• Centralized decision-making.

• High infrastructure costs.