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A longitudinal study of top-level executive performance
1Price College of Business, University of Oklahoma, Norman 73019-0450, USA. cruss@ou.edu
The Journal of Applied Psychology
|August 25, 2001
Summary
Executive competencies influence performance, with resource-oriented skills impacting initial success and people-oriented skills affecting long-term trends. This selection system offers significant financial benefits.
Area of Science:
- Organizational Psychology
- Human Resource Management
- Executive Leadership Studies
Background:
- Executive selection systems are crucial for organizational success.
- Predictive validity designs are essential for evaluating selection tools.
- Understanding the interplay between executive competencies and performance trends is vital.
Purpose of the Study:
- To assess the predictive validity of a hybrid selection system for top-level executives.
- To identify which executive competencies predict initial performance and subsequent performance trends.
- To estimate the utility of the selection system in terms of financial gains.
Main Methods:
- A predictive validity design was employed with 98 top-level executives.
- Hierarchical linear modeling was used to analyze competency ratings and performance data.
- Utility estimates were calculated to determine the financial impact of the selection system.
Main Results:
- "Resource problem-solving-oriented" competency ratings predicted initial executive performance.
- "People-oriented" competency ratings predicted subsequent performance trends.
- The selection system was estimated to generate an additional $3 million in annual profit per selected executive.
Conclusions:
- Executive performance is influenced by both individual competencies and situational factors.
- A comprehensive model of executive performance must account for person-situation interactions.
- Future research should explore how situational circumstances moderate the relationship between executive competencies and performance outcomes.
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