Alfred P. Sloan
By Kara Margraf
In 1966, the New York Times published an obituary titled, Alfred P. Sloan Jr. Dead at 90; G.M. Leader and Philanthropist, which brought highlight to his life that was dedicated to being the General Motors president and chairman from 1923 to 1956. As seen in the title of the highlighted glimpse of his life, “leader” became synonymous with his name. Here in this dedication, divulged Sloan’s management style that brought the company to new heights, pioneering automotive advances such as four-wheel breaks, ethyl gasoline, crankcase ventilation, and knee action front springs. His impact on GM as a leader and the automotive industry as a whole did not go unnoticed. Presidents and other chairmen from competing organizations such as Henry Ford 2d, chairman of Ford Motor Company stated that Sloan was, “one of the small handful of men who actually made automotive history.” Ford went on discussing that it was his leadership style that brought so much effect on the on GM. “Under his leadership,” he stated, “ General Motors developed from a loosely organized group of companies into the present highly efficient giant corporation.” Alfred Sloan was the president of GM from 1923 through 1937 and then moved to the chairman of the board from 1937 to 1956. In all that time, he did not dictate or order about. His obituary mentioned that he was known throughout the organization as “Silent Sloan.” He did not order workers around, he prided himself on “selling” his ideas to associates and accepting their criticism in return. Sloan believed he portrayed a very participative style of leadership. To quote Sloan himself, “I prefer to appeal to the intelligence of a man rather than attempt to exercise authority over him.” On the inside looking out in the early days of the automotive industry, Sloan found that in order to sell cars, GM first had to sell the need for them. This idea to cover a basic need of humans is a key component of Maslow’s Hierarchy of needs, “a need to feel successful and prestigious.” Alfred’s Sloan’s management style and forward way of thinking is what saved GM from plundering under previous awry of mismanagement.
In 1966, the New York Times published an obituary titled, Alfred P. Sloan Jr. Dead at 90; G.M. Leader and Philanthropist, which brought highlight to his life that was dedicated to being the General Motors president and chairman from 1923 to 1956. As seen in the title of the highlighted glimpse of his life, “leader” became synonymous with his name. Here in this dedication, divulged Sloan’s management style that brought the company to new heights, pioneering automotive advances such as four-wheel breaks, ethyl gasoline, crankcase ventilation, and knee action front springs. His impact on GM as a leader and the automotive industry as a whole did not go unnoticed. Presidents and other chairmen from competing organizations such as Henry Ford 2d, chairman of Ford Motor Company stated that Sloan was, “one of the small handful of men who actually made automotive history.” Ford went on discussing that it was his leadership style that brought so much effect on the on GM. “Under his leadership,” he stated, “ General Motors developed from a loosely organized group of companies into the present highly efficient giant corporation.” Alfred Sloan was the president of GM from 1923 through 1937 and then moved to the chairman of the board from 1937 to 1956. In all that time, he did not dictate or order about. His obituary mentioned that he was known throughout the organization as “Silent Sloan.” He did not order workers around, he prided himself on “selling” his ideas to associates and accepting their criticism in return. Sloan believed he portrayed a very participative style of leadership. To quote Sloan himself, “I prefer to appeal to the intelligence of a man rather than attempt to exercise authority over him.” On the inside looking out in the early days of the automotive industry, Sloan found that in order to sell cars, GM first had to sell the need for them. This idea to cover a basic need of humans is a key component of Maslow’s Hierarchy of needs, “a need to feel successful and prestigious.” Alfred’s Sloan’s management style and forward way of thinking is what saved GM from plundering under previous awry of mismanagement.
In his early days at GM, Sloan is responsible for creating a highly successful decentralized form of management that delegated the authority to make production decisions at the factory level and simultaneously created central committees in the GM headquarters of Detroit that guided critical matters such as policy and finance formulation. This structure did not stray from a centralized form of management for the most critical functions but allowed freedom of factory production to find efficiencies in their own way. Sloan’s management style became a largely adopted management procedure not just in GM today but, many other organizations. Without Sloan’s management style, the company may not have survived the great depression yet, with his innovative structure, he allowed General Motors to thrive by leading GM to be the top-selling car manufacturer of his time, surpassing Ford. His accolades were not earned without the hard work that developed a structure for this company to adhere to disciplines and routines that aided the company for years after his departure and even today.
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