A longitudinal study of top-level executive performance.

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Abstract
Competency ratings were obtained from a hybrid selection system on 98 top-level executives in a predictive validity design. Hierarchical linear modeling results indicated that "resource problem-solving-oriented" competency ratings predicted initial performance. "People-oriented" competency ratings predicted subsequent performance trends. Utility estimates suggested that the system generated an additional $3 million in annual profit per candidate selected. Groups of executives with similar performance trends were identified who had encountered qualitatively different situational circumstances. Findings imply that a model of executive performance must contain main effects for person (competencies) and situation (economic-industrial) characteristics on both subsequent performance and performance trends. Future research needs to examine which situational circumstances moderate relationships between executive competencies and initial performance or subsequent performance trends.

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