CASE 26 ALFRED SLOANS MANAGEMENT STYLE This case analyzes the tenure of Alfred Sloan as the Chief Executive

e Officer of General Motors over a 35-year span, ranging from 1920 through 1955. He was known by the many managers who worked for him for his acts of kindness, help, advice, and sympathy during their times of need. While he seemed to be a deeply personal executive who connected with his subordinates, at the same time he was completely detached from the entire group. This may have been due to his very professional upbringing, but he was always known as Mr. Sloan, and never referred to any of his other top executives by first name. His upbringing was most likely different because he was, in fact born in the 1870s. He had grown to be a senior executive of his own business prior to 1900, so his managerial style could best be described as old-school. Although he addressed his white subordinates who were in power this same way, he was unlike others of his time, in that he referred to his African-American subordinates in the same manner. Even when a person introduced themselves by their first name, i.e. Barnaby, he would always ask for, and then address them permanently by their last name. He frowned upon the use of first names by anyone in his organization. It was a well-known fact that Mr. Wilson, for many years General Motors President, and Sloans eventual replacement was on a first name basis with many of the Vice Presidents. Sloan loathed this. It is possible that he felt this way because he had no close friends within the General Motors group. He had always been a sociable man until deafness made it difficult to communicate with others. Most of the friends he had, which were outside of the business had long passed by this time. The only one who was different, was Walter Chrysler, who had only become a personal friend after Sloan had left General Motors. Mr. Chrysler had later gone on to found his own successful automotive group, upon Sloans advice. As his close friends began to pass, Sloan became to feel more and more isolated, yet never reached out to create new friends within the circle he belonged, that of General Motors. He never initiated new contact, or invited anyone over his home, nor did he accept any invitation to visit others. Henry Francis du Pont, who was his boss in the earlier 1900s had

reached out to him, but he also declined the fostering of any type of friendship there. He had stated that their relationship was purely business. He was a lover of the outdoors, and had frequented hiking, camping, and fishing trips, but only with people outside of work. Once he retired in 1955, his old age made it more difficult to travel and enjoy outdoor activities, he began to invite General Motors people over to his home in New York. Although this may have seemed like a step in the right direction, these invitations were strictly business. He went so far as to only allow them into the office wing of his apartment, since he was still a director and board member. Sloan said of his management style, that It is the duty of the chief executive officer to be objective and impartial. He must be absolutely tolerant and pay no attention to how a man does his work, let alone whether he likes a man or not. The only criteria must be performance and character A chief executive officer, who has friendships within the company, has social relations with colleagues or discusses anything with them except the job, cannot remain impartial Although we look at the example set by Sloan in his management style, and see a deeply troubled man, who was at best lonely, we cannot ignore the blaring fact that he was successful. The case asks us whether Abraham Lincoln or Franklin D. Roosevelt, or even todays executives would agree with the way that Sloan ran his business. Truthfully, he was a good leader, who just severely lacked personal skills within the office. Being able to lead a successful business is a great quality, but there has to be some sort of happy medium. Sloan was situated at one extreme. The other extreme to this equation would be the leader who was too involved in the day to day activities of the organization, and whos personal relationships got in the way of the business. Truthfully to be successful in business, and life, one must find a middle ground to achieve true happiness.