Nepotism Repackaged?
We all recognize that there is a likely shuffle of managers with any change in management in a company. Key positions get filled by the people brought in by the new CEO, or at least those who are aligned with him.
Many top managers cite track-record and trust as key factors, but is this just a veiled excuse for nepotism?
It may not be so extreme, but if one observes the hiring trends of PRC or NRI managers, one would find it difficult to overlook the bias towards hiring from their own nationality. Soon, the department is dominated by a particular nationality, even crowding out the locals.
While most Chief Executives may not bother too much about the hiring practices of every single department (for that would certainly be micromanagement), they should be aware that such practices can irreversibly change the culture of the company.
With the tenure of Chief Executives becoming shorter and shorter, most in the hot seat would only bother about short-term performance targets and neglect longer-term issues. What would prevent middle managers from practicing favouritism, if the top level of managers are known to bring in their own crew?
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