According to Wheelen and Hunger (2010), “executive succession is the process of grooming and replacing a key top manager” (p G-4).
A corporation has two options when looking at replacing an executive; promoting from within the organization or hiring from outside the organization. Promoting from within the organization can be done in two ways, grooming a candidate to take over versus internal candidates competing for the position. Organizations that choose to groom a candidate to take over an organization have significantly higher performance (Wheelen & Hunger, 2010). At Baptist Hospital administration and managers are to be two deep. That means, if by chance an administrator or manager is not in the hospital when Joint Commission or the Agency for Health Care Administration chooses to pay a visit, there is a person below them that knows what needs to be completed when the announcement is made that a regulatory organization is in the building. This person also has to have knowledge of the day to day activities of that person; a hospital cannot stop running if someone is in an accident or out sick for an extended amount of time.
“Companies that are known to be excellent training grounds for executive talent are AlliedSignal, Bain & Company, Bankers Trust, Bristal Myers Squibb, Citicorp, General Electric, Hewlett-Packard, McDonald’s, Mckinsey & Company, Microsoft, Nike, PepsiCo, Pfizer, and P&G” ( Wheelen & Hunger, 2010, p. 306). Creating a succession plan has become important for the success of an organization.
There are firms that look outside of the organization for a CEO position. Organizations that hire from outside tend to be organization that are struggling. “Outsiders have been found to be very effective in leading strategic change for firms in Chapter 11 bankruptcy” (Wheelen & Hunger , 2010, p. 307). CEO’s hired from the outside do not stay in the role as