We have never had representatives from the student body attend. However we have several instructors that were students and they sometimes attend and they have greater empathy for what the students go through.
Do you ever get students involved in the process?
At our particular campus we have panel interviews that include a presentation by the candidate. We have found it beneficial to get feedback from several people including instructors and the next two levels of management. Differences of opinion are discussed in an open meeting and a consensus is taken. Even then errors are made in hiring, our trade is somewhat aggressive and it takes time to convert a person from the field to become an actual instructor in mind & body.
Hiring practices seem to vary widely. Some institutions have very simple procedures while others have applicants return many times to meet with different constituencies. Personality or temperament assessments may come into play. Corporate practices influence the procedure for many schools. Some require a brief classroom presentation or other role playing techniques.
Obviously, this can be a real burden for the applicant, but if done well, it also is an opportunity for that person to get more insight into their prospective employer's culture and priorities.
How does your organization handle differences of opinion about a prospective employee?
I agree that screening during the hiring process is crucial. An important aspect that is sometimes inquiring about interpersonal skills when checking references. Also, a good interviewer should be able to be adept at "reading people." In our organization, we interview potential staff/faculty in a group setting, so that the various facets and personalities within the institution are represented and have the opportunity to offer input and feedback on a candidate.
It's difficult and dangerous to generalize across the sector, but this type of attitude is something that every school must be vigilant about. Unfortunately, instructors with this mind set can be hard to "rehabilitate". Their behavior also contributes significantly to the students' perception of the institution.
Some of the hardest personnel decisions I had to make involved instructors who had great technical skills but who had trouble relating to students who didn't meet their standards. Screening for empathy and people skills is a critical part of the hiring process. Finding the right people really reduces the situations you describe.