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Pepsi Co.

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Pepsi Co.

After reading through the articles pertaining to Pepsi and their current search for a new CEO, the question can be raised as to whether or not the company should hire from within or search elsewhere for a suitable replacement. When a company is deciding whether to hire from within the company or to choose an outsider, there are both positives and negatives that come with each side of the decision. Choosing an insider that has already worked in the company has its advantages such as conveying a positive message to other employees throughout the organization. For instance, promoting a hirer level executive to fill the CEO roll with show all current employees that if they work hard and dedicate themselves to their profession, they may be able to get promoted to higher-level positions. Secondly, by promoting within a company, a sign of relief goes out to the majority of the current executives who are working for the company because when an outsider is hired for the role of CEO, often they will bring their own management team with them thus taking away jobs from the current employees. Lastly, promoting from within an organization ensures that the knowledge of the corporate culture remains intact. When an outsider is hired, it takes time for that person to learn the ins and outs of an organization whether it is finding out whom the all-star employees are or just what the culture of the work place is like. In essence, hiring an outsider equals a longer learning period, which is not necessarily a bad thing, but it also does not bring too many positives either. On the contrary, hiring an outsider to fill a CEO position does bring its own benefits along with it. When an outsider is hired, usually they will not carry any “baggage” along with them in terms of biases or firm opinions about certain issues within an organization. With that said, it is also important to realize that promoting a high level executive to fill the CEO role may bring about similar issues that occurred with the previous CEO because that person who was promoted may hold similar beliefs as their predecessor because of their dealings together. Hiring someone from the outside enables new beliefs, new culture, and new policies to be implemented effectively. On a similar note, often the next in line to fill the CEO position may not be ready for the responsibilities that come along with the job and having someone run a company who is not ready for the task can lead to disastrous results. While hiring an outsider may bring some unwanted changes within an organization, sometimes certain situations need a fresh start to more forward from tough times.

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