Abstract
In this paper the sometimes confusing concepts of structural centralization and decentralization and administrative centralization and decentralization are classified. Brief contrast Is made between the Latin American and North American models. It is hypothesized that there is a positive relationship between administrative decentralization and (I) leadership development at lower hierarchical levels, (II) greater participation in the decision‐making process by people at lower hierarchical levels, (III) an increased sense of responsibility, for the final output, by those at lower hierarchical levels, (IV) implementation of innovative changes which are proposed by individuals at lower hierarchical levels, (V) the development of different approaches to solving problems in the various subsystems at lower hier‐archical levels, (VI) the rapidity at which decisions can be made concerning local issues.
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