NewTel Is a Telephone Company with a Policy of Filling

Essay

NewTel is a telephone company with a policy of filling positions through promotions rather than hiring from outside.Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas.Consequently, almost all of the company's 14 senior executives joined the company over 20 years ago in junior engineering positions.There is increasing pressure on NewTel to become more marketing and service oriented.This resulted in four people being hired last year from consumer products and retail firms to fill new senior executive positions in marketing and service management.The external hires were necessary because current employees were not sufficiently qualified.Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities.The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment.Explain why conflict has occurred among the senior executives at NewTel.