Case Study: Leadership Factories - CEO Production Analysis Report

This case study analyzes the concept of 'leadership factories,' focusing on companies that consistently produce CEOs. It examines the varying abilities of organizations to cultivate leaders from within, highlighting McKinsey & Company as a top performer compared to others like CitiGroup and AT&T. The analysis delves into the advantages of promoting internal talent, such as increased employee commitment and deeper understanding of the organization, while also acknowledging potential disadvantages like a lack of fresh perspectives and biased decision-making. The report includes recommendations for improving leadership development through employee training, creative freedom, and recognition, emphasizing the importance of a supportive job environment and employee engagement. The conclusion acknowledges the trade-offs between internal promotions and external hiring for leadership positions, stressing the impact of organizational culture and employee motivation on leadership effectiveness.

Running head: CASE STUDY
CASE STUDY
Name of the Student
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Author Note

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Table of Contents
Introduction......................................................................................................................................2
Summary..........................................................................................................................................2
Advantages......................................................................................................................................3
Disadvantages..................................................................................................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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Introduction
The conversion rate of the different employees of the organizations to the CEOs in an
organization is often the result of the different factors that affect the employee engagement and
growth in the organization. One of the important factors affecting the overall performance of the
employees in the organization are often affected by the different job roles of the different
employees and the level of positive reinforcement and the growth they get in the organizations
(Bargau2015). One of the important factors that show the conversion of the employees in the
organization into the leaders of the organization is exposure of the employees in the real life
scenarios of handling organization related issues and the level of employee engagement in
organizations which helps in overall development of the employees into able leaders in the
organization.
Summary
There is a great variance in the companies in their proficiencies of producing able leaders
from within their organizations. The ability of the different organizations to produce leaders from
their own organization is an evidence of great employee motivation and the organizational
factors within the organization. The factors affecting the individual leadership in the organization
is often affected by the internal organizational environment and the overall leadership abilities in
the organization. The various factors affecting the growth and development of the different
sectors in the organization is often the result of the different factor in the organization such as
employee motivation and proper employee engagement practices (Goetsch. and Davis 2014).
The case study takes into account 1187 largest companies of the world and analyses them for the
different practices related to the different aspects of growth in the organizations. The different

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intra organization change that is seen and observed in the organizations helps in the motivation
of the employees. This helps to engage in the organization and thereby develop an organizational
role which will help in the employee motivation. The different aspects related to the growth of
the organizational benefits are often the resultant of the proper employee motivation. There is a
difference in the ratios of the employees who are promoted to CEO level from one organisation
to another; this directly impacts the motivation level of the employees. One of the major factors
affecting the development and growth in the organization is the leadership motivators in the
organization (Goleman 2017). Therefore the different factors related to the growth and
development in the organization is often the result of the overall organizational culture. While
McKinsey performed exceptionally well in the different situational scenarios the performance of
the organizations such as CitiGroup and AT&T are not up to the mark. The lack of the increment
in the number of employees in the organization is often affected by the different factors such as
the overall lack of performance motivation in the employees of the different organization. The
different factors affecting the talent management of the employees is also the result of the
different factors that affect the overall performance of the employees in this organization which
is also affected by the employee engagement and the factors related to the different situations
faced by the different organizations in their operational performances.
Advantages of leaders from the organisation
The different management consultancy firms had a relative advantage over the other
firms in comparison in terms of the level of promotion or career opportunities among the existing
employees. When an employee understands the growth prospect in the company he or she
becomes more and more committed to the work and the objectives of the organisation. This in
turn has a direct impact on an increased level of performance form the employee as well (Ho et

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al 2015). The different factors affecting the growth and development of the different aspects
related to the overall employee motivation in the organization is often the result of the different
factors in the society that affect the overall performance of the different employees in the
organizations (Ho et al 2015). The various situational factors that help in the overall
development of the situations related to the different aspects of the organization that the
employees work in. It is seen as a general tendency that the people working in the management
firms are generally affected by the workplace scenarios which makes them better workers within
the organization and thereby makes them able leaders and CEOs. The work environment in the
different scenarios relating to the various work related situations in the organization is often the
result of the various sectors of the organization they work in. The management employees get a
greater exposure in the management environment which makes them better at the understanding
and the intricacies of managing the different organizations making them better CEOs. The
different contingency theories like Path-Goal Theory and Fiedler's Contingency Model help
in the development of the better leaders. The different operations related to the different
organizational tasks that the employees learn in their time in the different organization is often
the resultant of the different factors relating to the growth of the organization (Ghaffari et al.
2017). The management employees that the different organizations have are often dependent on
a number of different situational scenarios the different employees face. The large multinational
firms with open business environments tend to produce more CEOs due to the creative approach
that needs to be taken in the organization for the overall innovative applications to be
implemented in the organizations.
The various features in the organization are often the result of the policies in the
company. The open environment of operations with the due credit given to the creative venture

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often lead to better motivation among the employees leading them to perform better and engage
in the operations of the organization and further reaching more important positions in the
different organizations (Amundsenand Martinsen 2015).
The management of the company formulates the policies and decisions based on several
factors leading to a number of situational knowledge and the capabilities to handle the different
situations in the different organizations as shown in the different contingency theories. The
situations that the open environment working scenarios present to the different employees in the
organizations makes the employees of a better leader as they are exposed to a number of barriers
and challenges and had grown with the company.
The management firms often take care of the crisis management scenarios of outsourcing
organization making the management work towards the overall development of the organisation.
The performance of the company is based on the skills and abilities of the employees leading to
the different growth oriented results across the organization. This often leads to growth and
development in the opportunities for the employees. To manage the situations in the organization
which helps them in getting better growth opportunities in the management profile jobs in the
organizations.
Disadvantages of leaders from the organisation
There are a number of disadvantages of appointing leaders in the management position in
the organisation (Atmojo2015). First of all, the barriers that may occur in the operations of the
business may be tackled in the same way the previous manager used to, as the person who has
been promoted have not come across any other method, therefore there is a chance of lack of

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clarity and vision. A person who has been appointed form the same organisation will rise with
the same values and principles and will not add improvements to the culture.
Another disadvantage of recruiting leaders from within the organisation is that they might
be influenced by the previous relations they have made in the company; this may cloud their
judgment and decision making abilities. Therefore, the overuse of the intra organizational posts
is not always viable for the growth and development of the different organizational structures
(Saleem2015).
Another issue is highlighted in the following example; a person of a certain ethnicity
cannot focus on the problems faced by the employees or understand the work culture of another
ethnicity making it difficult for the different international financial operations to have growth.
Likes of this is evident in the talent management of the financially operating organizations like
Citi bank where the employees are hired from the different places of operation for their effective
interventions and understanding of the local problems.
Recommendations
Therefore it is evident that the able leadership and talent management is needed for the
proper development of the employees in the organization. The policies implemented by the
organizations play an important role in the nurturing the skills and performance of the employees
which often leads to the various factors relating to the growth of the employees abilities to
manage organizations and develop different capabilities. Here are some of the recommendations
for the issue that has been discussed.
 The training of the employees plays an important role in the overall development of the
organization and improvement of the satisfaction level of the employees.

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 The employees should be given their creative freedom which helps them to develop a
sense of responsibility in the organization helping in their overall development.
 The appreciation of the employees for their performance also affects and improves the
performance of the employees in the organization making them ready to handle the job
responsibilities of CEO.
 The job environment and the employee engagement in the different ventures play an
important role in the overall development of the leadership patterns in the different
organizations.
Conclusion
It can be concluded form the above discussion that there are clear advantages and
disadvantages of recruiting leaders from the organisation. The behavioral traits, the situation or
circumstances they are in as well as the nature and scale of the business impacts the way a leader
leads an organisation. Growth and development is aligned with the motivation of the employees
and their commitment is one of the major advantages that have been recognized. On the other
hand, repetitive flaws and rigid values and principles may be the biggest disadvantages.

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References
Amundsen, S. and Martinsen, Ø.L., 2015. Linking empowering leadership to job satisfaction,
work effort, and creativity: The role of self-leadership and psychological empowerment. Journal
of Leadership & Organizational Studies, 22(3), pp.304-323.
Atmojo, M., 2015. The influence of transformational leadership on job satisfaction,
organizational commitment, and employee performance. International research journal of
business studies, 5(2).
Bargau, M.A., 2015. Leadership versus management. Romanian Economic and Business
Review, 10(2), p.197.
Ghaffari, S., Shad, I.M., Burgoyne, J., Nazri, M. and Aziz, J.S.S., 2017. Investigating the
mediation role of respect for employees on the relationship between participative leadership and
job satisfaction: A case study at University Teknologi Malaysia. Australian Journal of Basic and
Applied Sciences, 11(4).
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Ho, S.S., Li, A.Y., Tam, K. and Zhang, F., 2015. CEO gender, ethical leadership, and accounting
conservatism. Journal of Business Ethics, 127(2), pp.351-370.

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Saleem, H., 2015. The impact of leadership styles on job satisfaction and mediating role of
perceived organizational politics. Procedia-Social and Behavioral Sciences, 172, pp.563-569.