Sloan's Management Theory

Sloan's Management Theory, developed by Alfred P. Sloan, emphasizes the importance of decentralized management and structured organizational practices within large corporations. It advocates dividing a company into semi-autonomous units, each responsible for specific functions, to promote efficiency, flexibility, and accountability. Sloan believed that empowering managers at different levels enables better decision-making and responsiveness to market changes. His approach also stresses the significance of clear financial controls and strategic planning to ensure overall corporate growth and stability. This theory helped shape modern corporate management by balancing centralized oversight with decentralized operational autonomy.