Final answer:
The subject in question suggests a debate between hiring managerial talent from within versus from outside of a company. Recent business trends lean towards a flat organizational structure, while the insider-outsider model describes the dynamics between established employees and new hires. Both strategies have their own advantages and are chosen based on specific organizational needs.
Step-by-step explanation:
The assertion that the best managers are often brought in from outside the company rather than being promoted through the ranks is a topic that touches upon current trends in business management and organizational structure. Many companies today have adopted flat organizational structures that emphasize collaboration and teamwork, often involving a more egalitarian approach where even entry-level employees are encouraged to provide feedback. This can blur the lines between traditional hierarchical positions and create environments where leadership potential can be recognized at all levels. However, the historical trend has seen the rise of the insider-outsider model, where insiders are employees who grow within the firm and are familiar with its procedures, while outsiders are new or prospective hires who may bring in fresh perspectives or specialized skill sets, yet lack firm-specific knowledge.
It's important to note that the integration of external managers can be driven by the need for new expertise, fresh ideas, or the desire to bypass the limitations of a pool of internal candidates. The practice is based on the belief that external hires can lead to innovation and carry the company through transformative changes, especially in an established firm where financial data and strategic plans are more publicly accessible to shareholders and bondholders. However, the reduction in managerial and supervisory positions due to outsourcing and consolidation in industries, as well as streamlining command structures, has indeed modified the landscape of upward mobility within companies.
Nonetheless, the debate over whether hiring from within or from the outside is better for a company's success is ongoing. Both approaches have their merits and can be chosen based on a company's specific needs, culture, and strategic direction. There are concerns, though, as mentioned, that the ladder to the upper echelons of corporates remains steep, with only a few reaching the top and the majority of workers remaining at lower levels without clear pathways to rise.