The Correct Methodology of Selecting CEOs Abstract Selecting the correct methodology for recruiting your next chief executive officer is undoubtedly one of the most difficult decisions that a board of directors will ever have to make. Horse races, promotion contests, and the extensive use of executive search firms have proven to be the most common forms of selecting company’s top executives. The fight to hold to the title of CEO between internal and external candidates is cut-throat and in most cases, a popularity contest based on reputation alone. Selecting the proper method of recruitment helps companies to eliminate these battles and pick the top candidate based on their qualifications such as their credentials, experience, …show more content…
If the horse race is taking place internally, most boards still choose to search outside of the company for qualified candidates to fill the leadership position (Citrin, 2009). This allows the board to assess how well its internal employees are matching up against external applicants. Horse races can also turn into popularity contests, in which the stakeholders and board members will exercise their stakeholder power (Lawrence & Weber, 2008). This stakeholder power gives the board members and stakeholders the ability to use resources to make an event happen and secure the outcome that they see fit. In turn, this method creates a high stress environment for those competing in the horse race and can even be distracting to the organization as a whole (Citrin, 2009). According to Citrin (2009), in a horse race competition for CEO, there is a clear winner and a clear loser in the battle. In most cases, the loser will end up leaving the company to pursue other executive leadership positions which is a disadvantage because of the loss of long term, quality employee. In the fight for a corporate leadership position, the horse race methodology of selecting a CEO is dated and seems to have far more disadvantages than advantages. Promotion Contests Promotion contests are informal contests that
According to Wright et al (2011) recruitment and selection are part of the human resource practices common within organizations in an effort to develop human capital, which is necessary for better production. Numerous scholars have discussed the issue in different contexts. Pramila (2010) discussed the issue of recruitment and selection in an Indian- based company. The article presents effective recruitment practices, which are valuable for organizations. Among the identified practices include internal recruitment, interviews, personality tests, employer references, succession planning, and newspaper recruitment. According to Najafi (2011) the most important aim is to achieve an improvement in their recruitment and selection. With information provided in this article, the researcher is able to advance a thorough understanding of the different issues on improving recruitment and selection processes within organizations.
CEO is one of the most sought-after and least understood, jobs in a company. Everyone believes that
In 1965, the average pay of a CEO in a company was about 20 times (20X) the pay of the average worker in the company. In 2012, the average CEO increased to about 379X the pay of the average worker. In 2012, Apple CEO Tim Cook earned 6258X the pay of the average worker at Apple in 2012
By direction of the board, a foundation’s top executive staff person (titled CEO for this discussion) manages all aspects of the organization. CEOs typically oversee the foundation’s money, time and human resources and act as a liaison between the board and staff. Rather than keeping the CEO in a strictly managerial position, some boards award them a role in governance as well, offering the CEO full membership—and in some cases, voting rights—on the board. CEOs who sit on the board hold a position of great privilege but also great responsibility. With an equal voice at the board table, CEOs can enjoy more stature and influence among board members. Yet, at times, they may feel conflicted between the two
According to Aravamudhan, & Krishnaveni, with the competition for outstanding candidates getting fiercer, companies have to go all out and ultimately find the best talent available (Aravamudhan, & Krishnaveni, 2015). Additionally, CompTech must realize that it has in-house talent that will need to be considered. This is where a good personnel recruiter would prove to be beneficial. Furthermore, hiring a specialist in this area to make crucial recommendation on the best fit individual for CompTech’s positions are very vital to the success of the organization (Aravamudhan, & Krishnaveni, 2015). Thus, CompTech’s success in hiring and attracting quality applicants are closely related to hiring the right personnel recruitment. This personnel recruitment must be very aware of CompTech’s goal and mission to accomplish hiring the right candidates for its positions.
While there are various ways to recruit prospective employees, research suggests that the nature of information used in recruiting strategies has a direct effect on who will apply and accepts a job position (Fathi, Wilson & Cheokas, 2011). In the past CompTech’s only strategy has been to focus on candidates with past store management experience outside of the company. While experienced is a very crucial factor, if the company continues with this single dimensional approach to hiring it will continue to experience a high turnover rate and sunken costs invested into staffing agencies and advertisement. CompTech must revamp its hiring strategy in order become a significant competitor in the labor market.
Recruitment is important for organizations, it helps in building organizations. However, when recruiting for an executive at a University it is important to remember that you are seeking for someone who will build and maintain growth that ultimately leads to success. Therefore, it essential to ensure that the executive recruiting process does not fail, failure can cause the University to suffer. Furthermore, without employing successful strategies for executive recruiting, the institution can be taking the risk of attracting under qualified candidates.
The Environmental Protection Agency’s (EPA) recruiting and selection process is in depth and seeks to select qualified individuals. The process is lengthy in order to ensure selectees have the right experience to lead the organization in the right direction. EPA leaders need “people skills” to motivate their employees, build partnerships, and communicate with their customers. Leaders must have management skills to produce results with limited resources. The recruiting process has evolved overtime and still has room for improvements. This report provides a broad overview of the steps taken during the recruitment and selection process for executive level management.
Investors required staff with credentials. Taking into account only career background of the candidate can harm the company from within. Top manager should manage people, keep the working atmosphere productive, and do not let the corporate culture to be
The assessment and selection of personnel for any organization are crucial steps that should be taken carefully to ensure that the organization has the right human resource capital to fulfill its goals and objectives. From case four of Tanglewood, it emerged that the company has an increasing rate of employee turnover and personnel reorganization is a constant in the company which means that the organization does not have the right human resource management tactics to keep employees satisfied with their jobs and to keep the employee turnover rate low ADDIN EN.CITE Kammeyer-Mueller2009572(Kammeyer-Mueller, 2009)5725726Kammeyer-Mueller, J.Tanglewood casebook2009New York, NYMendota House, Inc.( HYPERLINK l "_ENREF_2" o "Kammeyer-Mueller, 2009 #572" Kammeyer-Mueller, 2009). Consequently, there is more pressure on Tanglewood and its human resource management staff to fill the vacant positions and find the right people for the position. Any decisions made regarding the candidates should be based on the recommended KSAOs for the position and future work behavior of the candidates. Tanglewood should also make steps towards improving the career progression and job satisfaction of employees in order to reduce the staff turnover rate. This is a detailed plan that gives recommendations on the selection decision making for the manager position in Spokane. A selection panel will be developed who will be involved in decision making and developing
The First two hires from the proposed Staffing and Recruitment plan should be the addition of two new Chief of Operations’ (COO). A COO is needed for their DaDeli division and one will be required at Corporate Headquarters. With the continued lack of structured training and changing corporate culture, these two additions will help shape the centralized decision making system. The COO at each division will also be responsible for compiling reports from their locations and advise GC3 executives of problem areas and anomalies. It will be important for Tony, Bruce and Bonnie to utilize executive search agencies to help them find this level of employee with the skills and abilities they will need. Failed efforts to locate an exceptional candidate could alter their future vision for the entire organization.
This is a review of an article which discusses the different techniques of hiring the right, mainly in this case, senior executives. This article aims to provide leaders with guidance on how to add value to the hiring process by improving their recruiting diagnostics. The article focuses on a concept which is referred to as fit and unpacks. This concept breaks down into sub-categories which are, fit with the job, fit with the leader, fit with the team, and fit with the organization. Instead of the traditional approach of recruiting and assessing candidates based on the current needs of the organization, this concept also addresses the current and emerging talent requirements. The article also considers the types of questions
Although schooling is extremely important it is not the only thing people need in order to become a company’s chief executive. There are many skills that are helpful to have in this particular career. A person must be organized because of all the planning they will have to be doing, have patience due to the stressful obstacles that will surely be in the way, which ties in directly with problem solving. Also, they would be dealing with a lot of people so speaking skills and communication is something that they can definitely not struggle with. The abilities a chief executive must obtain are written expression, speech clarity and recognition, written composition and deductive reasoning, and oral comprehension (O-Net). All of which will help move a person move ahead of competitive peers.
Recruiting highly capable employees has become more than an art, it has now become a strategy. And taking a strategic approach means utilizing a strong recruitment and selection process to attract the right candidates to my organization. The strategy has grown, there are several effective recruitment and selection strategies that are far more advanced than simply asking the right questions.
Current economic conditions are forcing many enterprises today to evaluate how they will manage current and future personnel needs. There continues to be an abundance of qualified external candidates yet their business models are increasingly becoming more complex. This dilemma is forcing the issue of whether to rely on external or internal recruitment, which is the subject of this analysis. Empirically-derived studies of the economics of each point to the value of internal candidates being able to build on their expertise and intelligence, and therefore make even greater contributions over time (Chan, 1996). The contrarian argument today is that having external candidates enriches the expertise and knowledge of the firm (Julia, Rog, 2008). There is more debate on this topic than many others in Human Resource Management (HRM) and talent management, and it has the potential to be divisive throughout organizations where one group of managers believes one is superior to another (Shafique, 2012).