Organizational Leader Selection: The Impact of Tenure, Job Level Experience, and Being an Insider on Effectiveness

Provided by: Center for Promoting Ideas (CPI)
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Selecting the right leader will not only reduce the costs and risks of a new leader failing, but can help the organization become more competitive and effective. The researchers elaborate that tenure among top leaders is declining significantly and turnover is increasing significantly. According to them, this failure in leadership selection impacts not only the perceived organizational effectiveness, but also top-line revenues, bottom line profits and overall market value. Thus, human resource planning in general and leadership succession in particular, is of utmost importance to an organization achieving its strategic objectives.

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