A phenomenon in economics termed a spill-over equally affects the business world. This is especially true for mid-sized firms where promotions are not always dependent on hard metrics, but on effects of seemingly unrelated events. According to a study conducted by professors from universities of Stanford, Michigan and Washington, such causality is also prevalent in conglomerates. This increases at places weak in governance. It is a talent management technique to manage the aspirations and motivation levels of different departments. Having some independent members in the board of governance can go some way in reducing this spill-over. That will ensure that those governing are not mere cahoots to departmental heads. Those in the C-Suite must also look to diversify the makeup of their teams so that there is no indulgence towards friends. Spill-overs are not always negative and many firms proactively encourage this to balance the resources available.

Source:https://www.gsb.stanford.edu/insights/why-you-really-got-raise?utm_source=TWITTER&utm_medium=Social&utm_campaign=Insights&Date=20180624&linkId=53398582

Uploaded Date:04 July 2018