Interesting management article on internal promotion

[Chern Ann]

http://www.technologyreview.com/blog/arxiv/23800/

In a nutshell, in large organizations, incompetence tends to spread because people who are very good at their current jobs may not necessarily be good at the job one level up, and now they have the simulations to prove it.

I've observed this to be true sometimes (e.g. someone happy as a clam and productive in their job failing miserably in their supervisor's position due to the added responsibility and reporting duties), which would make hiring from outside the company (i.e. poaching) a better idea.

Tech companies don't face this problem too much in engineering departments though, where there isn't much of a difference in job function between a junior and senior engineer beyond pay, and who's in charge of the team.

What have you guys observed?

 

[supervike]

In my line of work, I believe I've noticed the exact opposite. While there are exceptions, most of the management level folks that have come from outside the company have (IMHO) been failures in that particular position. Whereas, of the management I know that had come up from the ranks has excelled (again there are a few exceptions).

Of course, I have little experience outside my own work (i've been here close to 25 years now), but it is a very large company, and I've plenty of experience with different areas within the company. However, I don't have alot of experience with the HR department, or finance. So, it could be very possible there.

 

[skeeve]

Well, my story is anecdotal, but it a good example why outside influx may not always work. One day there was a moderately large company producing pure chemicals and biologicals for research. The name of the place was Amersham. It was a very well known and well trusted manufacturer (by those who used their products).

About, may be, 10 years ago General Electric decided that it is a good idea to expand into "health care"-pharma-biotech business. As you might imagine if you need to make a microwave or cruise missile GE is place to ask, biotech - not so much. As usually the best way of doing it (in GE mind) was to acquire a company or three that were already in a business. Amersham became one of the first prey. New management who came from GE, said that "amersham" is just a $900 millions brand while GE is more then a hundred billion dollars brand and so, by outside management decision, Amersham brand was killed and all Amersham products were re-branded as "GE Healthcare".

A certain assistant professor around this time submitted a paper into a peer-reviewed journal. While describing methods and reagents he mentioned that he was using a certain kit manufactured by "GE Healthcare". The paper was turned down. Among other thing the reviewer pointed out that the author was using kits manufactured by a "small, poorly known company GE healthcare, which makes it difficult for other researchers to reproduce published results."

The moral of the story - if you bring management personnel from outside, make sure that they will be willing to listen and at least vaguely familiar with the place.

 

[Dragonsreach]

http://www.technologyreview.com/blog/arxiv/23800/

In a nutshell, in large organizations, incompetence tends to spread because people who are very good at their current jobs may not necessarily be good at the job one level up, and now they have the simulations to prove it.
There are a number of reasons for this situation, but it basically resolves around a management expectation that someone can automatically fit into a management role WITHOUT training. Not always the case.

I've observed this to be true sometimes (e.g. someone happy as a clam and productive in their job failing miserably in their supervisor's position due to the added responsibility and reporting duties), which would make hiring from outside the company (i.e. poaching) a better idea.
Bringing in from outside sounds like a good idea, but the only instance I've been party too Failed Miserably due to the incoming parties inflexibility to adapt to new working regulations. Caused a such a serious Trade union/Management Head to Head that the 'incomer's' employment was terminated inside her probation period.

................