Recruitment Of Top Managers From Outside

Dear All,
I want to know whether the recruitment of top Managers up to 50% of sanctioned post from outside byepassing internal talent is beneficial to the organisation or it should be less than 25% to have a proper combination between internal Managers & outside Managers. Pl. offer ur comments.
Thank You,
Yours Sincerely,
Dr. C V Ambilwade

Dear sir,
There is no hard and fast rule wrt the recruitment. It depends on the required competencies for the position and competencies available with the in house people. If the in-house employees complies with a minimum of even 75% also it is better to promote in house people and get the work done instead getting an out sider.
In these circumstances there is no % which matters. The skill sets & competencies are only matters,
Thanks and regards - kameswarao

Dear Dr CV Ambilwade,
I agree 100% with what Mr Kameswarao has said. However, I would like to put forth one additional benefit of hiring outsider. Insiders get institutionalised to the organisation's culture and brining change is at times difficult. On the contrary, outsiders being dynamism.
Take the case of HP's new CEO, Leo Apotheker. He worked in SAP. HP is out and out hardware company and their software revenue share is only 3%. Yet the board has thought his candidature fit. Now how he competes with Dell, another hardware major that remains to be seen.
In the Indian context, one of the prominent courier and logistic company was turned around by one VP. This VP has background of auto-mobile!
Ok...
Dinesh V Divekar

Sir,
i am nisheeth trivedi i have done my bba nd i have 14 months work expirience in a consultancy and now am persuing my mba from ibs hyderabad with marketing as majors, but the problem is that 90% of the companies that are coming for campus placements are banks and insurance firms. I am looking for a good profile in marketing , it would be great if someone can help me in this.
Thanking you
Regards
Nisheeth Trivedi
IBS Hyderabad
9290428898

Dear Sir,

As indicated by our colleagues the hiring strategy varies from company to company.

Generally it will be preferable to have some Managers in top positions from external sources. This is because many times we observe that employees inside become resistant to change and start believing that whatever they do is the right way and refuse to adapt to changes.

In this context it would be preferable to hire employees from external sources. But while hiring adequate care must be taken that the person hired from external source is more resourceful and has a positive attitude to convince people internally. He should not be abrasive but at the same time should not be submissive too.

He must change things that are needs improvement in the organisation but should continue to adapt himself to the good things already prevalent in the organisation. For this he must have an open mind.

He must not be a person who will seek popularity but will be a person who will work efficiently with the help of internal resources.

M.V.KANNAN

New skill set will be added to company by Outsider employee New working practice & improvement in existing work envoirnmnet.

before appointing out source of top mamangement you think twice, because outsider not known your organisation environment. they not addjest your environment.

Dear Mr Hiremath RV,

I beg to differ with you when you suggest to think twice before hiring services of outsiders because they may not adjust to the environment.

Two things are here important. One is that at the time of recruitment you should be careful and assess whether the candidate could be amenable to the company environment or not.

Secondly, history corporate decline shows that company's have failed miserably because of insiders also.

Why Lehman Brothers failed? Why Enron failed? Why Nokia's market share the world over is falling down? Is it because of outsiders? No way!

Why Yahoo! and Microsoft are gasping while competing with Google? In fact when Google entered in the market in 1998 both these companies had experience of almost of decade.

Ramalinga Raju's Satyam failed not because he did not have experience of running IT company. In fact the clique that he had around him was with him for almost two decades.

In the Indian context, some of our communities are into business for thousands of years. But these thousands of years of experience did not translate into formation of single MNC of the type of FedEx, HP, Dell, Microsoft etc.

Lastly Mr Hiremath please note that nothing is deceptive in this world than the word "experience". Whether it will work or not is sheer gamble.

Thanks,

Dinesh V Divekar

Hi

The most important criteria is competancy and attitude. It could be an outsider or an insider who fits the bill. if one recruits outsiders at the middle management level and upwards, besides all the points mentioned above, the chances of insiders getting promoted are reduced (if we follow a fixed percentage for filling vacancies) which could be a major demotivator.

At the same time, promoting only insiders (and not recruiting outsiders) makes them take their career progression for granted which of course is a sure shot recipe for disaster. Insiders also tend to indulge in power games with a greater intensity with the security that they will anyway be in the top mgmt sooner or later.

The best would be to recruit outsiders at all levels inluding junior. Give importance to competancy. When recruiting at top level give both insiders and outsider an equal footing. In an interview for the post let insiders and outsiders compete on the same scale.

As Mr Divekar mentioned, 'experience' is a perception. Using it as a rigid scale of measure is like curbing the mind.

Thanks to all for expressing freehand opinions. To motivate the existing resources & to achieve the targets of the organisation it is essential to have a proper combination in recruitment policy. Also the cost of hiring the candidate from open market is very high. The organisation can hire the internal competent people having long experience within mere cost of an increment, however organisation has to pay full salary to the candidate appointed on higher post from open market. Further if one higher post is filled through internal candidate, all the employees working in the ladder get promotions creating a sense of satisfaction, loyalty & motivation. The departmental candidate is well acquainted with the culture, aims and objectives of the organisation. On the contrary outsider candidate requires some time to equip with the working culture, rules, regulations etc. According to me the ratio for filling the post of Managers shall be 75 % by way of Promotions on the basis of their seniority & performance, 15% by way of recruitment from departmental employees who r having professional qualification & hard working capacity and 10% by way of direct recruitment from open market. Whether this will be a proper combination? Pl offer your valuable comments.
Thank You,
Yours sincerely,
Dr C V Ambilwade