This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
Another criticism frequently levelled against the efficiency of large corporate organizations, is based upon the alleged inability of the board of directors sitting at the head office to grasp and appreciate conditions at the branches. Sometimes, it is asserted, with regard to the holding companies operating in the public service field, that the supervision extended to subsidiaries is inadequate, and that headquarters lacks personal touch with the local situation of each subsidiary and with the temper of the public that is being served. In some cases this criticism has been frankly accepted as in part valid, and the remedy has been found by securing as directors for local subsidiaries the strongest and best men in the local communities.