External Candidates Research Articles

Trends in Corporate Governance

The popular press and scholarly studies have noted a number of trends in corporate governance. This paper addresses the broad question of whether these trends are linked. And, if so, how; The paper finds that a trend toward greater board diligence will lead to trends toward more external candidates becoming CEO, shorter tenures for CEOs, more effort being expended by CEOs (equivalently less perquisite consumption), and greater CEO compensation.

Are search committees really searching?

Academic chair searches are admittedly a labor-intensive process, but they are made more difficult and often lead to less-than-optimal outcomes because search committees spend their time "advertising," "looking," but not truly searching for academic chairs. At the onset, certain "realities" must be acknowledged, including (1) understanding that unless your organization is renowned in the specialty for which you are conducting the search, candidates won't be pounding at your door for a job, (2) searches that fail to include an overall assessment of the department in question are likely to miss the mark, (3) chairs must have demonstrated not only clinical expertise but also business savvy, (4) the best candidate is not necessarily someone who is already a department chair, (5) when it comes to chair searches, it's a buyer's market, and (6) the search process is inextricably linked to the success of the search. Key to the process of conducting an academic chair search are the judicious formation of the search committee; committee members' willingness to do their homework, attend all committee meeting, and keep the committee's activities confidential; crafting, not revising, the current job description for the open chair position; interviewing viable candidates rather than all candidates and adhering to a coordinated interviewing process; and evaluating internal and external candidates according to the same parameters.

Efficient Labor and Capital Markets: Evidence from CEO Appointments

An examination of268 CEO appointments in USfirms indicates that, on average, appointment ofa better-quality CEO (a CEO who receives a pay premium ex-ante) is accompanied by an immediate positive revaluation of stock prices, and is followed by an improvement infirm performance. This evidence supports the notion ofjointly efficient and integrated labor and capital markets. The findings are particularly strong in non-regulated industries. The managerial labor market appears somewhat less efficient in internal successions, and the stock market appears less efficient or only relatively weakly integrated with the labor market in smallfirm appointments. This study examines the hypothesis that the managerial labor market and the capital market are jointly efficient and integrated with respect to Chief Executive Officer appointments. In an efficient labor market, the firm hires a new CEO from a slate of internal and external candidates, and offers a compensation contract commensurate with the person's quality and potential contribution to firm value. Further, if labor and capital markets are linked and jointly efficient, the stock market would respond positively to appointments of new CEOs who receive a pay premium in the labor market, indicating they are of better quality. Finding evidence of joint efficiency is a non-trivial task. First, there are doubts about the rationality or efficiency of the managerial labor market. This is because CEO compensation

How to compare apples to oranges: balancing internal candidates' job-performance data with external candidates' selection-test results

When making hiring decisions, it is imperative to know whether internal candidates' job-performance information is as reliable as selection-test data, and whether recent job-performance information is more valuable than similar but aged data.

Share Price Reactions to Ceo Resignations and Large Shareholder Monitoring in Listed French Companies

This study has analysed the share price reactions to changes in top management. A distinction was made among different types of CEO turnover: forced resignation, voluntary departures and age-related retirements. The announcement of a forced CEO resignation is hailed favourably by the market with a small but significantly positive abnormal return of 0.5%. The market may have anticipated the forced turnover since the abnormal return over a one-month period prior to the turnover amounts to 6%. Whereas voluntary resignations do not cause a price reactions, age-related turnover triggers a small negative price reaction. Subsequently, a more detailed classification of the change of top management was made based on the background of the successor (an internal versus external candidate), on the size of the corporation and the degree of corporate diversification. Expectedly, the nomination of an external manager following the performance-related forced resignation of a CEO causes a strong increase in abnormal returns of more than 2%. The cumulative abnormal return of an internal CEO promotion in a poorly performing firms drops by almost 1% on the day of the announcement. Presumably, this is because the internal manager is held (partially) responsible for past poor performance. In companies with good past performance and with internal succession, there is a price decline, but this is not statistically significant. The paper also analysed which corporate governance mechanisms are responsible for forced CEO turnover. A logit regression which accounted for time and industry specific fixed effects did not reveal a relation between performance and turnover. Furthermore, institutional investors, banks and the government do not seem to provoke CEO departures even if they own large blocks of equity. We did not find evidence that the government exerts control in the companies in which it holds majority shareholdings. In contrast, when industrial companies are major owners, there is evidence that forced turnover is facilitated. It also seems that it is easier to remove management in smaller companies than in larger ones. On the part of holding companies, there is only some evidence that they take a monitoring role in the case of other listed holding companies. No correlation was discovered between the degree of leverage and forced CEOs departures, although CEO turnover is facilitated if creditors have their own representatives on the board. Likewise, a high proportion of shareholder representatives on the board leads to a higher probability of forced CEO resignations. However, this probability decreases when the founding family is represented by one or more (executive) directors.

Re-Engineering Process in a Community Hospital: The Transition to Patient-Focused Care

LEARNING OBJECTIVE: Provide an overview of the inpatient care re-engineering process and role of the Food and Nutrition Service in a community hospital setting. Shortly after the merger of two community hospitals, a re-engineering project was undertaken to examine the delivery of inpatient care. A interdisciplinary team was given the goals to: 1.) establishing standardized systems at both facilitates; 2.) improve patient care; 3.) improve work efficiency; 4) limit the number of health care provider contacts for each patient; and 5.) reduce cost of care. Data developed for the team by the Food and Nutrition Service included: 1.) work flows and task analysis for all service staff; and 2.) food and non-food supplies used by the units. The team developed a model of patient -focused care utilizing a multi-skilled service worker. Responsibilities of the new position, titled Service Associate, included tasks previously assigned to Food and Nutrition Service, Environmental Services and Transport Department. Service Associates, now deployed to specific nursing units under the supervision of nurse managers, perform the following food service functions: 1.) patient tray delivery and pick-up; 2.) assisting patients with menu selection; 3.) delivery of patient nourishments; 4.) documentation of intake; and 5.) ordering of food and non-food supplies. As part of the implementation process, the Food and Nutrition Service was responsible for: 1.) development of job descriptions, including competency assessment; 2.) recruitment and selection of internal and external candidates; and 3.) training and education of personnel selected for the role. The development of quality monitors to be used in the evaluation of the patient care model include satisfaction and quality indicators related to Food and Nutrition Services at both sites.

External Recruitment versus Internal Promotion

This article analyzes the choice between internal promotion and external recruitment within the framework of an economic contest. Opening up the competition for a position to external candidates reduces the chance of promotion for existing workers and therefore their incentive to work. Increasing the prize for winning can maintain incentives but is limited by moral hazard and potentially disruptive office politics. Alternatively, a competitive handicap can be awarded to existing workers to boost their chances. This strategy is consistent with the general observation that an external candidate is recruited only if she is significantly superior to the internal contestants.

Le recrutement externe à la Poste, France-Télécom, EDF-GDF et la SNCF

Recruitment procedures for external candidates in the organizations studied in this article have several points in common : the connection between the level of diploma and the level at which one enters the organization, recruitment difficulties at certain diploma levels, weakly developed integration procedures. But they are different from the point of view of channels of entry, modes and criteria of selection and their duration. Finally, in every case, the tendency towards «debureaucratisation » leads to a modification of the recruitment procedures.

The Fate of External Candidates When inside Candidates Vie for Administrative Positions in Higher Education

Three methods were employed to assess how the presence of one or more inside candidates affects the outcome of the search process for administrative positions in higher education. Methods included an analysis of appointments and resignations in the Chronicle of Higher Education, a survey questionnaire sent to chairs of search committees, and an analysis of data from the College and University Personnel Association (CUPA) annual surveys. Results indicated a strong preference for hiring inside candidates for most administrative positions, with the exception of the presidency. The higher the level of the administrative position, the stronger the preference to appoint an inside candidate. The CUPA data indicated that an inside candidate will be hired between one-third and one-half the time for positions ranging from chair to vice president. The questionnaire data suggested greater preference towards inside candidates in doctoral degree-granting institutions than institutions that grant only master's or bachelor's degrees.

Assessment Center Opens in Atlanta for External Degree Candidates

Assessment Center Opens in Atlanta for External Degree Candidates

Formal Program Development in Library Education in Nigeria

ALTHOUGH some education and training of library personnel started in libraries in Nigeria before 1950, the formal library education program was not introduced until 1960. Before 1960 Nigerian trained librarians received their education in Great Britain by taking the Library Association Associateship examinations as external candidates. The first recorded training course in Nigeria was organized by the University College of Ibadan Library for local authority librarians. The admission requirements for the candidate were literacy in English and Middle II (the equivalent of eight years of education). The Unesco Public Library Seminar1 gave impetus to concrete discussions on planning for library development in Africa. The ideas on library education formulated at this seminar have since formed the basis for

Responsibility for new staff in colleges … 2

Selection policy and procedure. The first point here is the policy on internal promotion versus external recruitment. In the postwar conditions of full employment and a welfare state there has been a significant movement in the business world towards internal promotion as distinct from external selection. On the grounds of hard economics it is often found cheaper to promote an existing servant than it is to search the market and have to pay far more than you intended for somebody of uncertain qualities from outside. On social grounds it is also recognised as better to encourage deserving internal candidates than to impose external personnel on a community which is working together reasonably happily and satisfactorily. Recourse to external candidates is normally to be preferred only when a real shake‐up and warning to existing staff is intended or where some new development is afoot and where none of the existing staff has had the appropriate experience.

The Physics Department of Birkbeck College (University of London)

Birkbeck College was founded in 1823 as the London Mechanics' Institution for the original purpose of supplying education to craftsmen and small employers in the principles of the arts they practised and in the various branches of science and useful knowledge, and its first president was Dr. George Birkbeck who was mainly responsible for this new venture. But soon its students came from many other professions and classes. In 1858 the University of London was given the right to confer academic degrees to external candidates ; from this time on the principal aim of the Institution was to provide ' part-time academic teaching for workers from all walks of life in order to enable them to obtain a University degree.