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(1969). Management: Theory and Practice.
"First of all, the chief executive can exercise great powers on legal grounds. The bylaws of most corporations provide for the appointment of a chief executive who has practically full powers except as they are limited by the board of directors.
Secondly, the chief executive can strengthen this power by judicious use of rewards and punishments. Complying subordinates can be given salary increases, bonuses, stock options, benefits of all kinds, and status symbols, such as large offices, free cars, and credit cards. Conversely, he can withhold these and other privileges from subordinates who oppose his views. And he need not resort to discharge to make his displeasure even more evident. He can send men to 'managerial Siberia'—some post where they have nothing of importance to do—or gradually withdraw responsibilities from them until they become disgusted enough to quit. It is not necessary for the chief executive to take drastic steps very often. If he has occasionally done so in the past, few will care to challenge his power." (p. 88)
Secondly, the chief executive can strengthen this power by judicious use of rewards and punishments. Complying subordinates can be given salary increases, bonuses, stock options, benefits of all kinds, and status symbols, such as large offices, free cars, and credit cards. Conversely, he can withhold these and other privileges from subordinates who oppose his views. And he need not resort to discharge to make his displeasure even more evident. He can send men to 'managerial Siberia'—some post where they have nothing of importance to do—or gradually withdraw responsibilities from them until they become disgusted enough to quit. It is not necessary for the chief executive to take drastic steps very often. If he has occasionally done so in the past, few will care to challenge his power." (p. 88)
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