Competencies of Directors in Global Firms: Requirements for Recruitment and Evaluation

Posted: 10 Jul 2000

See all articles by Soo-Hoon Lee

Soo-Hoon Lee

Rensselaer Polytechnic Institute (RPI)

Phillip Phan

Johns Hopkins University - Carey Business School

Abstract

Using the competency profiling methodology (Boyatzis, 1982; Spencer & Spencer, 1993) in a resource-based theoretical framework (Wernerfelt, 1984; Barney, 1991), we provide a model for the recruitment and selection of board members to lead in global firms. Competency requirements for board members are described in terms of generic as well as specific competencies for their roles and responsibilities in a global firm. In addition, the selection process using assessment centre exercises are provided. Finally, we propose structures and processes for the evaluation of board members to ensure that they continually enhance their competencies in order to manage in a changing, global economy. Such activities include performance measurements of board effectiveness in terms of competency attainment as well as pay-for-competency structures to ensure that boards continually have the necessary competencies to lead in complex global firms.

JEL Classification: G34

Suggested Citation

Lee, Soo-Hoon and Phan, Phillip H., Competencies of Directors in Global Firms: Requirements for Recruitment and Evaluation. Corporate Governance: An International Review, Vol. 8, No. 3, July 2000. Available at SSRN: https://ssrn.com/abstract=233061

Soo-Hoon Lee

Rensselaer Polytechnic Institute (RPI) ( email )

Troy, NY 12180
United States

Phillip H. Phan (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

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