Top Management Team Composition and Views of Viable Strategies

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Top Management Team Composition And Views Of Viable Strategies Organizational behavior-II Article Summary Submitted By: M Vamshi Krishna,No.11135,Section-A Research question: The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm. Importance of this research: For the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision-making. Summary:  According to Kilmann and Herden, they may fail to take environme ntal changes into account in strategy formulation, in a similar way that a reactor strategy may be a result of a failure to take environmental changes into consideration.According to Gallen, sensing-feeling type managers may view a reactor strategy as a viable future strategy more often than other managers.Based on the study of the relationship between the cognitive styles and strategy ´ types, a manager's type of perception was found to inuence his or her view of viable future strategy.Intuitive managers were found to prefer analyzer or ´ prospector strategies and sensing types, analyzer or defender strategies.TMT composition 329 TPM 15,7/8 330 TMTs and strategies Previous studies of TMTs and strategy Since Hambrick and Mason presented the upper echelons perspective, numerous studies have concentrated on the relationship between the top management team and strategic issues.TMT composition 331 Cognitive composition of the TMTs and the strategy types Hurst et al.Intuitive managers in particular have been found to prefer an analyzer or a prospector strategy and sensing managers an analyzer ´ or a defender strategy.When we combine the cognitive composition of the TMT and strategy, it is essential to clarify what we mean by the TMT and ho w we dene its cognitive style.Most of the TMTs chose an analyzer strategy as being the most viable

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Transcript of Top Management Team Composition and Views of Viable Strategies

Top Management Team Composition And Views Of Viable StrategiesOrganizational behavior-II Article SummarySubmitted By: M Vamshi Krishna,No.11135,Section-AResearch question: The purpose of this paper is to form propositions about the relationship between the cognitive composition of the top management team and its view of the viable strategy for a firm.Importance of this research: For the top management teams, the results of this study emphasize the importance of knowing the cognitive composition of the top management team and especially taking it into consideration during strategic decision-making.Summary:According to Kilmann and Herden, they may fail to take environmental changes into account in strategy formulation, in a similar way that a reactor strategy may be a result of a failure to take environmental changes into consideration.According to Gallen, sensing-feeling type managers may view a reactor strategy as a viable future strategy more often than other managers.Based on the study of the relationship between the cognitive styles and strategy types, a manager's type of perception was found to inuence his or her view of viable future strategy.Intuitive managers were found to prefer analyzer or prospector strategies and sensing types, analyzer or defender strategies.TMT composition 329 TPM 15,7/8 330 TMTs and strategies Previous studies of TMTs and strategy Since Hambrick and Mason presented the upper echelons perspective, numerous studies have concentrated on the relationship between the top management team and strategic issues.TMT composition 331 Cognitive composition of the TMTs and the strategy types Hurst et al.Intuitive managers in particular have been found to prefer an analyzer or a prospector strategy and sensing managers an analyzer or a defender strategy.When we combine the cognitive composition of the TMT and strategy, it is essential to clarify what we mean by the TMT and how we dene its cognitive style.Most of the TMTs chose an analyzer strategy as being the most viable future strategy for a company in the spa industry.Only two TMTs chose a defender strategy and one chose a prospector strategy.Finally, TMTs led by older CEOs chose an analyzer or a defender strategy but not a prospector strategy.At the team level out of seven sensing-thinking teams chose an analyzer strategy and two of them chose a defender strategy.To evaluate some of the results of the earlier studies the paper uses information drawn from ten cases, and then presents propositions about the relationship between the TMT's cognitive composition and preferred strategy types according to the Miles and Snow typology.Two of the ten teams chose a defender strategy and a prospector strategy was preferred by one team.Neither the average age of the TMT, nor the age of the CEO nor the level of education seemed to be promising factors in analyzing the relationship between the composition of the TMT and the view of viable future strategy.