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First this is not a comment about MD Michelle Guthrie, but rather a comment on how managing directors or higher management is appointed not only in the ABC but in other corporations. Having followed the ABC since childhood and how its MDs are appointed, there has never been one MD (from the 1970s onwards) appointed from within the organization. I can presume that higher level managers have been appointed externally without having worked in the organization.
The effects of external appointments are twofold.
One is that workers within the organization with aspirations for higher level responsibilities are locked out of the 'game'. Those in lower ranked positions with suitable qualifications have the opportunity to move up a level. With these external appointments it may well create a lot of disappointment amongst workers who aspire for greater responsibility and reward but their expectations for higher level responsibility is thwarted because of external appointments.
Two, one of the disadvantages of external appointments is no corporate memory of the culture and the dos and don'ts of an organization. This may explain the frustration of Mr Jon Faine's frustration of "....frankly I’m sick of getting it ripped apart because of the failure of our managers,” because they may well be externally appointed. I need more evidence for that.
There may well be a need to change the culture and external appointments may be necessary. But then aren't there people within an organization with a vision to change the culture and practices? That is beyond the scope of my response.
If I had it my way, I would flatten the hierarchical structures of the ABC. That would save money. I have said elsewhere, that I knew a person who worked at the ABC during the large industrial dispute in the early 1990s who said that they recently employed more managers than people doing the actual work. That may go against my earlier statement of promotional prospects for higher positions. I qualify it by promotions for productive work. The ABC is not the only organisation.
In sum, productive managers and the MD should be employed from within to cater for highly motivated and aspiring staff from within. Appointments from within may reduce the frustrations of lack of corporate memory created by upper management encountered by Mr Faine. In addition flattening the hierarchy to productive jobs increases efficiency resulting in lowering costs.
Thank you,
Anthony of exciting Belfield