Internal Promotion vs. External Recruitment of Chief Executive Officer’s
Internal Promotion vs. External Recruitment of Chief Executive Officer’s
HROD 601
The decisions of the Chief Executive Officer are extremely important as their decisions affect the entire future of their company. Having the right person in the CEO role can result in great success, while the wrong person can lead a company to disaster. Mistakes at this level of an organization can be catastrophic whereas good decisions can lead to rapid growth and higher profitability. This article will analyze the choice between the internal promotion of an existing employee to the role of CEO versus an external recruitment to fill a vacant CEO position. We then recommend some optimal hiring practices for CEO replacement. We will suggest that wherever possible an internal candidate should be chosen to be the next CEO. However, some companies are either not mature enough to engage in this practice or find themselves in too deep a crisis to exercise this rule of thumb. Therefore we will also look at some circumstances where external candidates might be chosen instead.
The success of a company is the result of several variables, but having the right person at the top of an organization is one of the most crucial. The CEO is usually the most important employee in determining the success of a company and as such, businesses invest much time, effort and expense into making sure that they find the right person to fill this role. In addition to making strategic decisions for a company, there are other important ways that a CEO contributes to the business including setting the vision, strategy, and corporate culture. The CEO is the leader of the company and as such, the better the CEO leads, the more successful the company.
However, finding the right CEO is just as challenging as it is important. Not many people possess the skills and experience necessary to be an effective CEO. In order to be successful in finding the best fit for the role, companies need to
HROD 601
The decisions of the Chief Executive Officer are extremely important as their decisions affect the entire future of their company. Having the right person in the CEO role can result in great success, while the wrong person can lead a company to disaster. Mistakes at this level of an organization can be catastrophic whereas good decisions can lead to rapid growth and higher profitability. This article will analyze the choice between the internal promotion of an existing employee to the role of CEO versus an external recruitment to fill a vacant CEO position. We then recommend some optimal hiring practices for CEO replacement. We will suggest that wherever possible an internal candidate should be chosen to be the next CEO. However, some companies are either not mature enough to engage in this practice or find themselves in too deep a crisis to exercise this rule of thumb. Therefore we will also look at some circumstances where external candidates might be chosen instead.
The success of a company is the result of several variables, but having the right person at the top of an organization is one of the most crucial. The CEO is usually the most important employee in determining the success of a company and as such, businesses invest much time, effort and expense into making sure that they find the right person to fill this role. In addition to making strategic decisions for a company, there are other important ways that a CEO contributes to the business including setting the vision, strategy, and corporate culture. The CEO is the leader of the company and as such, the better the CEO leads, the more successful the company.
However, finding the right CEO is just as challenging as it is important. Not many people possess the skills and experience necessary to be an effective CEO. In order to be successful in finding the best fit for the role, companies need to
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