In: Operations Management
Read the Chapter 12 Mini-Case: A Change at the Top at Procter & Gamble: An Indication of How Much the CEO Matters?
Respond to question 2: How Is it a good practice to rehire a former CEO who has retired? Please explain the potential advantages and disadvantages of doing so.
Yes, it is good to hire a former CEO who has been retired from the job if he has contributed a lot and know the company very well. Although, a retired CEO cannot be a given a CEO position again but can join as a president of the company who can advise and consult on important issues to again get back to the same position.
The advantages of this are that the CEO already know the company and have deeper knowledge of the company. It is better than a new person who will take the time to learn about the company’s environment.
Some other advantages are-
Some disadvantage can be that he might be sometimes overconfident and takes decisions basis on his past experience which may not be suitable in the current scenario.
Some other disadvantages are-