What are the pros and cons of recruiting a CEO externally?
- External global market for corporate leaders
- New blood
- Higher risks (and potentially reward)
- Previous corporate/ industry experience and performance in focus
What are the pros and cons of recruiting a CEO internally?
- Creation of internal labour market
- Knows the fabric of the organization
- Lower risk (the board knows the fabric of the candidate)
- Previous experience, performance and values in focus
- Ability for socialitazion
What are the three (13) roles of the CEO?
Interpersonal
* Figurehead
* Leader
* Liason
Informational
* Monitor
* Disseminator
* Spokesperson
Decisional
* Entrepreneur
* Disturbance Handler
* Resource Allocator
* Negotiatior
Describe the three interpersonal roles of the CEO
Figurehead
* Symbolic head
Leader
* Motivating and activating subordinates
Liason
* Maintaining networks and relationships outside the organisation
Describe the three informational roles of the CEO
Monitor
* Seeking and receiving information on the organization and its environment
Disseminator
* Transmitting information to members of the organization
Spokesperson
* Transmitting information to outsiders
Describe the four decisional roles of the CEO
Entrepreneur
* Searching the org. and its environment for improvement opportunities
Distrubance Handler
* Corrective action when org. faces important disturbances
Resource Allocator
* Responsible for allocation of organizational resources
Negotiatior
* Representing the organization in negotiations with major external actors
What do Hambrick & Finkelstein (1987) mean by Managerial Discretion
Derived from three factors:
* task environment
* internal organizational characteristics
* Managerial characteristics
