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A longitudinal study of top-level executive performance.

C J Russell1

  • 1Price College of Business, University of Oklahoma, Norman 73019-0450, USA. cruss@ou.edu

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Summary
This summary is machine-generated.

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.

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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.