This document discusses Peter Drucker's views on federalism and its application to organizational design. It notes that Drucker believed in structuring organizations in a way that acknowledges human weaknesses like greed and lust for power. Specifically, it discusses how the principles of federalism like separation of powers, checks and balances, and decentralized authority can help curb abuses of power within organizations. The document also provides an example of how General Motors applied principles of federalism through divisional autonomy balanced with corporate unity.