Senior Executive Accountability
Lack of values has often affected reputation of many organizations in a negative way. In the worst-case scenario, some organizations have collapsed. Marshall is one of the organizations that failed due to lack of values on the side of the management. Marshall was a giant in electrical retail. It had over 5000 staff and 250 stores during its peak. However, 15 years after it was started, the company filed for bankruptcy due to a huge debt. The top executives were blamed for this downfall. They allocated themselves huge salaries. This plus poor financial management led the company to its downfall.
One of the reasons why a company would suffer from poor leadership in wrong method of managerial selection (Levinson, 1997). For example, Marshall HR managers relied on executive recruiters as a method of selecting leaders. Senior executives chose their own replacements. Issues such as skills or ability to lead were not considered. These selection methods reduce the possibility of having leaders who possess values necessary for leading an organization ethically and productively (Hollenbeck, 2009). This explains why the company failed. Poor leadership led Marshall to its own grave. A better selection method was required.
Involving I/O psychologists in executive selection would help select leaders with abilities and values that can lead an organization effectively (Hollenbeck, 2009). With the help of psychologists, organizations will be able to utilize effective managerial selection methods. For example, if interviews are considered a good selection method, I/O psychologists will make the interview process more effective (Hollenbeck, 2009). Also, with the help of psychologists, organizations will learn to implement and analyze tests such as personality tests effectively to predict job performance (Cascio & Aguinis, 2011). With the right selection methods, organizations can identify leaders with abilities and values essential for leading an organization effectively.
Cascio, W. F., & Aguinis, H. (2011). Applied psychology in human resource management (7th ed.). Upper Saddle River, NJ: Prentice Hall.
Hollenbeck, G. P. (2009). Executive selection—what’s right … and what’s wrong. Industrial & Organizational Psychology, 2(2), 130–143.
Levinson, H. (1997). Organizational character. Consulting Psychology Journal: Practice and Research, 49(4), 246–255.