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The effectiveness of top management groups in manufacturing organisations

West, Michael and Patterson, Malcolm and Dawson, Jeremy and Nickell, Steve (1999) The effectiveness of top management groups in manufacturing organisations. CEPDP, 436. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753013053

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Identification Number: 436

Abstract

We test whether demographic characteristics and team processes in top management teams predict the subsequent productivity and profitability of their companies in 42 UK manufacturing organisation. The results that there are independent effects of both demographic characteristics and team processes. Team member mean educational level and team tenure both predict the subsequent productivity and profitability of the companies positively, while age diversity in the team is a negative predictor of company performance. Team processes (clarity of and commitment to objectives, participation, task orientation, and support for innovation) predict (positively) company performance. Only mean educational level, of the demographic variables, also predicts team processes, suggesting that the effects of demographic variables on company performance are not strongly mediated by team processes. The implications of these findings for the composition and development of top management teams are discussed.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 1999 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 31 Jul 2008 08:13
Last Modified: 01 Oct 2010 09:15
URI: http://eprints.lse.ac.uk/id/eprint/20209

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