The Path to the Top: Changes in the Attributes and Careers of Corporate Executives, 1980-2001

The analyses below compare the career histories and personal characteristics of the executives in the top ranks of the world's largest and most stable business operations, the Fortune 100, between 1980 and 2001. To our knowledge, there have been no prior studies of contemporary changes in the experience or attributes of executives beyond CEOs. In 2001, these executives were younger, more likely to be women, and less likely to have been Ivy League educated. Most important, they got to the executive suite about four years faster than in 1980 and did so by holding fewer jobs on the way to the top. (In particular, women in 2001 got to their executive jobs faster than their male counterparts --there were no women executives in the Fortune 100 in 1980). Executives in 2001 also spent about five years less in their current organization and were more likely to be hired from the outside than in 1980. Interestingly, the most stable firms the 26 that were in the Fortune 100 in both periods had just as much lifetime employment among executives in 2001 as in 1980, although changes in other aspects of careers were similar. Overall, the path to the executive suite and the attributes of the individuals who get there appear to have changed even in the largest and most stable business operations.

Are Franchises Bad Employers?

Franchise jobs are often described as representing the epitome of the "low road" approach to managing employees: high turnover, little training, deskilled jobs, and little employee involvement, practices often seen as unsophisticated. Research on franchise operations suggests, however, that the basic operating principles and practices of franchises tend to be more sophisticated than those of equivalent independent operators. We might therefore expect their employee management practices to be more advanced as well, challenging the stereotype of franchise jobs. We use data from a national probability sample of establishments to examine the relationship between franchise status and employment practices. While descriptive statistics suggest that franchise operations use low road practices, once industry, size, and other control variables are included in the analysis, franchise operations appear on important dimensions to offer better jobs with more sophisticated systems of employee management than similar non-franchise operations.

The organizational predictors of executive career advancement in career moves across employers

This paper examines the career moves of executives between two different organizations and looks at the characteristics of executives´ employing organizations as a predictor of the success of the moves. The paper uses a proprietary data set of a retained executive search firm that contains information on the career paths of executives in the financial services industry. The results show that the perceived operational excellence of executives´ employing organization has a significant signaling power for other employers and strongly impacts the success of executives´ moves across different organizations.Career management, Organizations, Executives, Finacial services industry, Signaling theory

Understanding Executive Job Search

We apply the exploitation/exploration dichotomy faced by organizations in business strategy to the decisions of individual executives as to whether to continue in their current organization and exploit career opportunities there or explore new ones through the avenue of job search. Specifically, we observe whether executives pursue offers from an executive search firm to be considered for positions at other organizations. Insights from the multi-armed bandit problem help explain who searches and who does not, focusing on the structural attributes of each individual’s situation. Individuals are more likely to search where their current roles are less certain and where broader career experience makes search more useful because the array of possible opportunities is greater. The results also shed light on the operations of executive search firms, who are central actors in executive careers

Are franchises bad employers?

Franchise jobs are described as representing the epitome of the "low road" approach to managing employees. High turnover, little training, deskilled jobs, and little employee involvement, practices often seen as unsophisticated. Research on franchise operations suggests that their basic operating principles and practices tend to be more professional and advanced than those of equivalent independent operators. We might therefore expect their employee management practices to be more advanced as well, challenging the stereotype of franchise jobs. We use data from a national probability sample of establishments to examine the relationship between franchise status and employment practices.Employement practise, Franchise organizations

Executive search and selection with mediation: The role of executive search firms in executive succession

The dissertation focuses on the determinants of executives\u27 career moves between different employers. It explores the individual- and organization-level factors that increase executives\u27 attractiveness for a hiring organization, and make executives more open to new opportunities in other organizations. The dissertation also explores how the presence of a mediator (retained executive search firms) impacts executive career moves and the predictors of executive career success. Chapter 1 provides an overview of the literature on executive career mobility and executive search firms. Chapter 2 presents a qualitative analysis of work processes in an executive search firm. It explores the most critical aspects that distinguish between excellent and failed searches and demonstrates that the executive search process shows great differences not only across the sample of retained executive search firms, but across individual search consultants as well. Chapter 3 examines the career moves of executives between two different organizations and compares two sets of predictors of executive career success: human capital attributes and the characteristics of executives\u27 employing organizations. The reputation of executives\u27 employing organization has a significant signaling power for other employers and strongly impacts the success of executives\u27 between-organization moves. The characteristics of the organization that executives transition to also powerfully influence executive career success. Executives use their employment spell at reputable, large-sized, public organizations as a conscious career-building mechanism and are willing to forgo a promotion premium to join such organizations. Chapter 4 tests the effect of organization-level determinants of executive movement on two groups of executives: executives who expressed a willingness to move to another organization and “loyal” executives who chose not to be considered for a job opportunity when they were contacted by the executive search firm. Executives are less motivated to leave organizations that have a reputation for operational excellence, good labor market reputation and sound financial performance. Their willingness to stay with an organization, however, is not influenced by the size of their employer or by its dominance in an industry

Executive search and selection with mediation: The role of executive search firms in executive succession

The dissertation focuses on the determinants of executives\u27 career moves between different employers. It explores the individual- and organization-level factors that increase executives\u27 attractiveness for a hiring organization, and make executives more open to new opportunities in other organizations. The dissertation also explores how the presence of a mediator (retained executive search firms) impacts executive career moves and the predictors of executive career success. Chapter 1 provides an overview of the literature on executive career mobility and executive search firms. Chapter 2 presents a qualitative analysis of work processes in an executive search firm. It explores the most critical aspects that distinguish between excellent and failed searches and demonstrates that the executive search process shows great differences not only across the sample of retained executive search firms, but across individual search consultants as well. Chapter 3 examines the career moves of executives between two different organizations and compares two sets of predictors of executive career success: human capital attributes and the characteristics of executives\u27 employing organizations. The reputation of executives\u27 employing organization has a significant signaling power for other employers and strongly impacts the success of executives\u27 between-organization moves. The characteristics of the organization that executives transition to also powerfully influence executive career success. Executives use their employment spell at reputable, large-sized, public organizations as a conscious career-building mechanism and are willing to forgo a promotion premium to join such organizations. Chapter 4 tests the effect of organization-level determinants of executive movement on two groups of executives: executives who expressed a willingness to move to another organization and “loyal” executives who chose not to be considered for a job opportunity when they were contacted by the executive search firm. Executives are less motivated to leave organizations that have a reputation for operational excellence, good labor market reputation and sound financial performance. Their willingness to stay with an organization, however, is not influenced by the size of their employer or by its dominance in an industry