Promote from Within and Hiring Form Outside Essay

Introduction In my opinion based on the case study, it is not justified in appointing Mike Ullman, an outsider as CEO instead of Jessica Robert, who was instrumental in turning around the company between 2005 and 2010. The reason I disagree is because promoting from within brings a lot of benefits to employees and organization. I individually support promoting from within and I think that promoting from within is definitely more justified than bringing in an outsider. Research shows that insider and outsider both has different benefits and loss and it is depends on the managerial decision. Different management has different view towards insider and outsider. I have choose to support promoting from within in this assessment is because that the research make me believe that promoting from within can increase productivity and employees satisfaction. I have provides three strong reason to support my personal view. Question 1 The first reason of promoting from within is good for morale. When the top management is decided to promote from within, the others employees are often very pleased because they think that â€Å"one of their own† has been promoted to a management-level position and makes them feel nothing is impossible. (David G. Javitch., 2005) The morale of employees will improve when they realize that every one of them is possible to be promoted and this usually leads to increase motivation of employees. Since Jessica Robert was instrumental in turning around the company, the others employees will think that it is justified to promote Jessica Robert. The others employee has witness her hardworking in turning around the company and they do not have any objection in promoting Jessica Robert. If the company promotes Jessica Robert, the morale of employees will definitely boost because they think that it is possible to happen on their own too. When morale and motivation goes up, the productivity and the efficiency of the company will increase especially when the employees like or respect the newly promoted individual because they are already used to the way that work together with the newly promoted individual. (Charles R. Knoeber., 2001) Motivation is playing an important role within an organization because in increased of motivation often leads to increased of employee satisfaction. In case, Jessica Robert has joined the organization as the COO at 2005 and she was made a turnover for the company. Her succession is all seen by the others employee in the organization and she became a very respective person in the company. If the company promotes Jessica Robert as CEO, the motivation of others employee will definitely increase because most of the employees are respect her and they have been working together quite a long time thus, they are already used to the way Jessica Robert work. Second reason is an internal candidate is most likely already familiar with the functional aspects of their new job because he used to an employee in the organization. (DR. David G. Javitch., 2005) Jessica Robert He joined the company at 2005 and she is very familiar with all the process and the system in the particular organization and she don’t have to spend times to get used to the new environment, people, and the job scope. She knows the corporate culture, the procedures, policies, processes, employees, and internal and external customers associated with the job. (DR. David G. Javitch., 2005) Therefore, by promoting she can definitely increase the effectiveness of the company because she can generally hit the ground running. She can work more effectively than an outsider and increase the productivity. She can also lead the team to achieve goals easier than an outsider because she probably already familiar with every employee’s ability and behavior. (Mobb. S., 2010) A final reason to promote from within is that the current employee is already a â€Å"known quantity† to both management and non-management. Both groups know the employee’s strengths and limitations in terms of technical skills, abilities, knowledge bases, and professional personality. (DR. David G. Javitch., 2005) Internal candidate is recognized by both group and they may find easy and feel satisfy to work together with the person who they used to familiar with. Promoting Jessica Robert is actually benefits to the company because both management and non- management know her ability and strength. Her succession on turning around the company has proved her ability and she is definitely qualified to be the CEO of the company. Besides that, she is not longer requires any or as much training as employees from outside the company because she are familiar with at least the general workings of the business. (G. Raheja.C., 2010) Question 2 Advantages of promoting from within The first advantage of promoting from within is benefits on both sides. An organization that promotes from within has the opportunity to identify the characteristics, qualifications and skills it wants to be the suitable leader. (Greenwood, B., n. d) This will benefit the employees, who have a clear understanding of expectation. It is also benefits the organization because by promoting from within, it actually gives the top management a chance to evaluate staff carefully before making a recommendation for a promotion. In the process of evaluation the employees, the top management may discovered the skill and ability of each different employees and make a further promotion or changes. (Mobb. S., 2010) The other advantage is good relationships. (Greenwood, B., n. d) They have a solid network of collegial relationships within the organization because they used to an employee of the organization. The employees are willing to mentoring by him because he probably has build up a very good relationship within them. The top management is also relieved on him because his ability and skill has been recognized. Employees who are promoted from within are more likely to have a good understanding of the organization, its history and core values as well as the culture of the organization. They do not have to spend much time for extra training and they know the way to manage the organization and the way to help organization to earn profit. (Moobs.S., 2010) Disadvantages of promoting from within The first disadvantage is competition among staff. Promoting from within can lead to competitiveness among staff members vying for the same position. When one person is promoted, bad feelings can result in the people left behind. (Agadoni, L., n. d) This can lead to dissatisfaction at work, poor work performance and de-motivated the employees. Some employees may have felt entitled to a promotion even if they are not qualified, simply because they have put in more time and effort to the company. If length of service were the only criterion for promotion, people could be promoted to a job they can’t perform, which could lead to them being fired and reduce the effectiveness of company. The other disadvantage is smaller pool. The top managements have fewer options to fill a spot when they look for promotion only within the organization. (Agadoni, L., n. d) In addition, an insider of the company might not have the right skills needed to perform a job above their current level. They would need training and experience to accomplish the new tasks as expected, whereas outside talent might already possess the needed skills and different kind of experience. It will definitely reduce the organization’s efficiency when training is necessary for the new promote because re-training takes a lot of times and cost. (R. Knoeber. C., 2003) Advantages of bringing in from outside The first advantage of bringing in from outside is be able to achieving clarity on what the situation really is right now both internal to the company and externally. Most of the times, an outsider can see things in different angle and with precisely because they have different experience and they are new in the organization. (Constance Dierickx., n. d) They sometimes bring a point of view that is clear for that very reason. This different lens and frame of reference is exactly why an outsider is valuable and also what most organization is looking for. The second advantage is calibration. Most of the insider of the organization who are appropriately trying to inform the leader but who do not have an independent point of view and who may be stuck in routine ways of reporting. They are often follows the leader’s point of view and they do not have their own experience in certain sector. An outsider first in the organization, he may bring a breadth of different experience from having worked at different of companies in multiple countries on multiple continents as well as different industries. (Constance Dierickx., n. d) An outsider can ask questions that are different, share what he has observed and lead the members to achieve organizational goal. They can challenge their own assumptions as well as the veracity of the information they may hold dear because they have different of resources comes in different way. Disadvantages of bringing in from outside The disadvantage of bringing in from outside is learning curve. It takes time to follow up to speed on a new job, and learning about the corporate culture. (Lisa McQuerrey., n. d) This is especially true when the new outside manager wish to radically change the management style that previously was in place. Not only does the manager need time to be acquainted with the changes and its employees also need to come to an understanding of how the new promoted operates and what performance expectations he brings to the table. The second disadvantage functional expertise of the outsider. Unless the top management has witnessed the outsider at work in his/her field of expertise, otherwise there is no way of knowing whether the outsider’s functional expertise is meets the organization’s standards. (Mayhew.R., n. d) The technical skills or clinical experience of an outsider might not fit the organization’s requirement as well as the job scope. In addition, most of the organization does not take long time for employers during the recruitment and selection process and the employer should always ready to pay risk for incompetency recruitment. (Richards Brigg. B., n. d) Impact of promoting from within on the morale of employees The impact of promoting from within can improve the morale of employees due to great communication. An organization actually has many levels of communication such as from management to employees, between departments, between management groups and between individual employees. To maintain morale, communication lines need to remain open and important information needs to be delivered in a timely fashion. (Anderson. A., n. d) According to Anderson. A, laying off employees usually has a negative impact on morale, but allowing employees that are not scheduled to be laid off to believe that they could damage morale even further. A communication must be build within an organization, a leader who are promoted from within is actually be able to do that because they have been worked for a long time in an organization and good relationship could be build within employees as well as management group. Impact of bringing in outside on the morale of employees The impact of bringing in outside is affect the morale of employees because of the changes in management. Employees can become accustomed to the practices and methods of a particular manager, and when there is a change in management that can have an effect on morale. (Anderson. A., n. d) When an outsider bringing in, he might change the management of the organization and this will affect the morale of employees because most of them are not comfortable with the change and it may takes time for them to acquainted. (Lisa McQuerrey., n. d) Referencing Charles R. Knoeber. (2001) CEO Succession: Handicapping and the Choice between Insiders and Outsiders. [Online] Available at: http://hubcap.clemson.edu/~sauerr/seminar_papers/succession2.pdf [Accessed: 14 Jan 2013] Agrawa. A. (2004) Are outsiders handicapped in CEO successions? [Online] Available at: http://www.bama.ua.edu/~aagrawal/succession.pdf [Accessed: 14 Jan 2013] Briggs, B. (2007) Problems of recruitment in civil service: case of the Nigerian civil service. African Journal of Business Management, Vol 1 (6), p. 142-153. Available at: http://www.academicjournals.org/ajbm/pdf/Pdf2007/Sep/Briggs.pdf [Accessed: 19 Jan 2013]. Mobb. S. (2010) Internal Managerial Promotions: Incentives, CEO Influence, and Firm Valuation. [Online] Available at: https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=ALEA2010&paper_id=267 [Accessed: 15 Jan 2013] G. JAVITCH. David. (2005) Selecting the Best Manager. [Online] Available at: http://www.entrepreneur.com/article/78576 [Accessed: 15 Jan 2013] Greenwood. B (n. d) The Advantages of Promotion From Within. [Online] Available at: http://work.chron.com/advantages-promotion-within-6320.html [Accessed: 17 Jan 2013] Laura Agadoni (n. d) business and entrepreneurship. [Online] Available at: http://yourbusiness.azcentral.com/disadvantages-promoting-within-4019.html [Accessed: 17 Jan 2013] Mayhew. R. 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