The article investigates the problems of the decentralized decision-making process in the structurally complex industrial companies. It considers possible alternatives to implement the principle of optimal combination of centralization and decentralization of production and management in industrial companies, which have building blocks of the center and the business unit. Many of the most diversified (conglomerate) and multiproduct companies oriented to industry have implemented divisional management. Obvious advantages and shortcomings of divisional management are considered.

Key words: governance, centralization, decentralization, divisional management, decomposition, industrial company.