Describe steps that should be taken to recruit the best candidate for the position of General Controller.  B. Given that the five interested employees already possess technical skills and knowledge required for the position of DM, how should the best candidate be selected?  C. Why is it essential to recruit quality employees?  D. How important is development of a succession planning system to an organisation such as Binger Limited

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Binger Limited specialises in manufacturing wooden office furniture which is in great demand
because its original modern design suits the Jamaican market. This company has been in operation
for 35 years, has been listed on the stock exchange for the past 10 and employs 50 people. The
Chief Executive Officer (CEO) and the Director of Human Resources have just made final changes
to a detailed succession plan for Binger’s employees based on a three-year horizon.
Three major points have emerged from the succession plan as follows:
1. The General Controller plans to retire within the next year and no one in-house is qualified to
replace him. In addition to his specific financial skills, he has the company’s financial history
readily available and is the CEO’s right-hand man. In fact, the CEO consults him for every
strategic decision he has to make. Since Binger is a public corporation, this position is crucial
for continuation of smooth operations.
2. The Director of Manufacturing (DM) joined the company 30 years ago as an Administrative
Clerk. He gradually moved up through the ranks from Production Clerk, Technician and
Supervisor to his appointment as DM. Over the period, he attended evening classes and
completed a BSc and MSc in Administration. As a member of the company’s management
team, he commands a lot of respect from the CEO who greatly values his opinion. His career
path, performance and fair decisions have earned him considerable credibility. He is also
respected by his team because he knows the company inside out and is an excellent leader in
the field. In fact, employees recognise his expertise and appreciate his recommendations
because they know that for several years, he had performed their jobs.
3. Recently, the production plant hired a few young persons with good technical skills who could
be ready to take on the position of DM within three years. Five of them have expressed an
interest and have shown that they have the potential to handle this job.
A. Describe steps that should be taken to recruit the best candidate for the
position of General Controller. 
B. Given that the five interested employees already possess technical skills
and knowledge required for the position of DM, how should the best
candidate be selected? 
C. Why is it essential to recruit quality employees? 
D. How important is development of a succession planning system to an
organisation such as Binger Limited?

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