A longitudinal study of top-level executive performance

Competency ratings were obtained from a hybrid selection system on 98 top-l evel executives in a predictive validity design. Hierarchical linear modeli ng results indicated that "resource problem-solvingoriented" competency rat ings predicted initial performance. "People-oriented" competency ratings pr edicted subsequent performance trends. Utility estimates suggested that the system generated an additional $3 million in annual profit per candidate s elected. Groups of executives with similar performance trends were identifi ed who had encountered qualitatively different situational circumstances. F indings imply that a model of executive performance must contain main effec ts for person (competencies) and situation (economic-industrial) characteri stics on both subsequent performance and performance trends, Future researc h needs to examine which situational circumstances moderate relationships b etween executive competencies and initial performance or subsequent perform ance trends.