Employing Idiots - Does the Board Care?

Abstract

Sound Internal Controls of any given firm requires that Board should be in-charge of the human resource function. Failure to evaluate the human resource could potentially mean that idiots are employed in a firm and some of them ascend to higher managerial positions with devastating effects to firm in the long run. Evidence however suggests that more needs to be done to ensure that there is proper alignment of firm’s objectives and the qualities of employees to implement board strategies and mitigate any risks associated with human resources by protecting competent employees from idiots who can be subordinates or bosses.

Keywords: idiot, board, risk, human-resource, function

JEL Classification: G30, G39, J24, M51