Topic 1 Listening
For some of the reasons presented in the reading, many companies have a policy of hiring outsiders to fill managerial positions. However, a closer examination will show that the policy is misguided.
First of all, the new perspective an outsider brings into the company’s corporate structure often leads to conflict in the managerial team. Companies often have specific corporate philosophies… (for example, about how decisions are to be reached and how work is to be organized). So when outsiders bring with them a significantly different philosophy, this can create serious disagreement and conflict… and make it difficult for the managerial team as a whole to function smoothly and efficiently. An internal employee, by contrast, is more likely to know company tradition.
Another point to note is that hiring outsiders may entail an additional cost that perhaps isn’t obvious. It’s true that outside hires may come with required managerial skills and experience. But to become effective as managers in a new company, they also have to establish personal relationships with their new colleagues—get to know them and win their trust. This can often take more time than one would expect, and an uncomfortable settling-in period between a new boss and workers can also be more costly in lost productivity than on-the-job training for an internal employee.
Finally, suppose a company makes a point of hiring outsiders as managers instead of promoting insiders. Well, that company will soon find that its own best employees will have not choice but to look to advance their own careers outside the company. And when these key employees leave, they will also take their valuable business contacts away with them to their new employer.