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PART II - MANAGERIAL DILEMMAS

Published online by Cambridge University Press:  05 June 2012

Gary J. Miller
Affiliation:
Washington University, St Louis
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Summary

When Edsel Ford died in 1943, many wondered who would step into his role as heir apparent to the Ford Motor Company. A leading candidate was security chief Harry Bennett, who had had close personal ties to Henry Ford. However, Edsel's son Henry managed to gain control of the company (with the aid of his mother and grandmother) and fire Bennett and his cronies.

This left Henry Ford II in the astounding position of having inherited complete control of a large and famous, if failing, organization. He knew he had to turn the organization around. He put up signs saying “Beat Chevrolet” all around the River Rouge plant. But he realized very soon that this was easier said than done. Dictatorial power over a large number of people was not enough. As he told one of his aides, “Clearly, I just don't know enough … to run this damn place” (Collier and Horowitz 1987: 214).

He hired the rising star of the General Motors system, Ernie Breech, who was a disciple of the great Alfred Sloan. Breech had the management expertise that Ford lacked. But this first appointment presented Ford with the dilemma that will occupy the next several chapters of this book: how to control subordinates who have the expertise that you lack. He initially offered Breech the presidency at Ford, then backed away at the last minute, fearing that he was giving away too much authority.

Type
Chapter
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Managerial Dilemmas
The Political Economy of Hierarchy
, pp. 75 - 76
Publisher: Cambridge University Press
Print publication year: 1992

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  • MANAGERIAL DILEMMAS
  • Gary J. Miller, Washington University, St Louis
  • Book: Managerial Dilemmas
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9781139173742.007
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  • MANAGERIAL DILEMMAS
  • Gary J. Miller, Washington University, St Louis
  • Book: Managerial Dilemmas
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9781139173742.007
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • MANAGERIAL DILEMMAS
  • Gary J. Miller, Washington University, St Louis
  • Book: Managerial Dilemmas
  • Online publication: 05 June 2012
  • Chapter DOI: https://doi.org/10.1017/CBO9781139173742.007
Available formats
×