SM WEEK 5
.docx
School
Nichols College**We aren't endorsed by this school
Course
MGMT ORGANIZATI
Subject
Management
Date
Dec 16, 2024
Pages
2
Uploaded by AgentMonkey15760
2. When should a person from outside the company be hired to manage the company or oneof its units?Sometimes it is necessary for a company to hire an external candidate to manage the company or one of its units. This week’s readings note that “the implementation of new strategies and policies often calls for new human resource management priorities and a different use of personnel” (Wheelen et al., 2018, p.294). The primary instance where an external candidate should be hired is when there is no obvious or viable internal candidate (Wheelen et al., 2018). This scenario may arise when no one internally has the knowledge or expertise to effectively execute the company’s objectives; this is particularly important if you are breaking into new industries or categories (Baiani, 2023). It is vital that the management position the company is seeking to fill should be someone who has the capacity and skillset to train and cultivate the employees working under them. Furthermore, hiring someone externally who has fulfilled a management role would provide the company with a person who already has the wherewithal to be a leader without having to allocate resources to things such as training. A company facing stagnant growth can also benefit from hiring outside to manage. An outside candidate can offer the company a fresh perspective, providing new ways of thinking “about everything from product requirements to financial practices” (Patel, 2015). Additionally, this person may have industry insights and knowledge that the company could use to improve its current strategy. Moreover, the hiring of an outsider can shake things up internally, prompting a change of corporate culture if necessary (Patel, 2015). This in turn can foster better lines of communication between employees and promote greater levels of innovation from these employees. Moreover, for a company facing stagnant growth, an outside hire can assist a company expand its reach (Patel, 2015); this hire can bring with them new contacts and resources the company can then utilize to revamp its strategies and perpetuate a greater rate of growth. Additionally, firms in trouble and in need of a turnaround often find it beneficial to hire externally (Wheelen et al., 2018). This is in part because many company board of directors “realize that the best way to force a change in strategy is to hire a new CEO who has no connections to the current strategy” (Wheelen et al., 2018, p.298). By having no ties to the company’s existing strategies or corporate culture, an external hire will be able to implement andrevise organizational policies and corporate culture norms easier than an internal candidate would.It should also be noted that hiring an external candidate only requires a company to fill one position. If the company were to promote from within, their would be a shakeup that trickles down with the company having to fill the positions of the employees they have promoted within. This domino effect can lead to the company finding it harder to close the vacancies it had createdby promoting internally. Additionally, a continuous habit of promoting from within could also lead to a higher level of resistance to change and a lack motivation for internal hires who won’t feel the need to go above and beyond because of the assumption that a promotion is inevitable (Uzialko, 2023). For a company with stagnant growth or in need of a turnaround, this could prove to be a costly endeavor if the internal promotions cannot successfully uphold the duties of the positions they were advanced to. ReferencesBaiani, Y. (2023, September 18). When to Hire Externally vs. Promote Internally? Strategically Build Your Dream Product Team.Linkedin. https://www.linkedin.com/pulse/when-hire-
externally-vs-promote-internally-build-your-yasi-baiani#:~:text=Do%20you%20have%20the%20right,your%20product%20to%20financial%20services.Patel, I. (2015, October 25). 4 Reasons Hiring an Outsider is Good for Your Business.IQ Workforce. https://www.iqworkforce.com/blog/4-reasons-hiring-an-outsider-is-good-for-your-business#:~:text=They%20Provide%20a%20Fresh%20Perspective%20Bringing%20in,exploration%20of%20doing%20things%20in%20new%20ways.Uzialko, A. (2023, October 24). Internal Hires May Not Always Have the Inside Track.Business News Daily. https://www.businessnewsdaily.com/7767-internal-vs-external-hires.htmlWheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Concepts in Strategic Management and Business Policy: Globalization, Innovation, and Sustainability(15th ed.). Pearson.