PART II - MANAGERIAL DILEMMAS
Published online by Cambridge University Press: 05 June 2012
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.
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- Managerial DilemmasThe Political Economy of Hierarchy, pp. 75 - 76Publisher: Cambridge University PressPrint publication year: 1992
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