reputation of "growing" its own CEOs, training and educating managers to embrace the corporate culture (Tichy and Sherman, 1993, pp. 32-50).
As a result of this history, G.E. employees had come to expect that their CEOs would maintain the existing corporate culture and values, particularly the "bargain" guaranteeing them permanent employment in exchange for loyalty and productivity. In this respect, the accession of Jack Welch to the position of CEO represented a hereditary transition of power which did not result in the maintenance of the status quo. Machiavelli notes that a hereditary leader should be able to enjoy the respect of his subjects in all situations, unless he "provoke[s] hatred by extraordinary vices" (Machiavelli, 1995, p. 6). From this perspective, Jack Welch has been similar to a poor hereditary prince because he undertook actions which destroyed some traditional institutions, causing his "subjects" to hate him. Most importantly, he eliminated the bargain which guaranteed permanent employment (Slater, 1999, p. 8).
Machiavelli was most famous for his ideas concerning the necessary personal qualities of a ruler. He noted that many philosophers had waxed eloquently on the necessity of virtue in a ruler. However, he stated that such ideas were based within the context of mythical states; the difference between how rulers ought to live (in the moral sense) and how they actually live is so great as to render the ideal qualities of a ruler useless. Trying to adhere to such lofty ideals is indeed dangerous to the personal and professional health of a ruler. A ruler who attempts to live a virtuous life in the presence of so many men who do not sows the seeds of his own destruction. Consequently, a ruler must learn when to abandon the principals of virtue (Machiavelli, 1995, p. 48).
The first virtuous attribute which must be abandoned is the reputation for generosity. Machiavelli noted that a reputation for gen...