Top Management Team Cognitive Characteristics and Organizational Performance

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Date
2020
Authors
Oketch, Joseph O
Kilika, James M
Kinyua, Godfrey M
Journal Title
Journal ISSN
Volume Title
Publisher
Academia edu Publishing Group
Abstract
Top management team (TMT) cognitive characteristics are associated with the ability of the top management team members to learn, remember, problem-solve and pay attention to details as they carry out their tasks within their organizations (Bromiley & Rau, 2016). Previous strategic management scholars have argued that TMT cognitive characteristics involve the theory of the mind or insight into peoples' thinking and prediction. These scholars have identified that TMT cognitive characteristics manifest in pattern recognition, problem solving or defining the problem in the right way, which then generate possible solutions in order to choose the best possible alternative. Some of these strategic management scholars have stressed that TMT cognitive characteristics involve the ability to make decisions based on the problems at hand, working memory or the capacity to hold and manipulate information. They have further argued that TMT cognitive characteristics comprise of the ability to cope with emotions, the capacity to collapse intricate schedules into actionable tasks and arrange them in the right sequence, and the skill towithstand distraction in order to achieve superior performance (Narayana, Zane & Kemmerer, 2011).Gavetti (2005), while contributing to the debate on TMT cognition, argued that TMT cognition is vital in sensing, interpreting, encoding and memory that are critical in the construction of organizational tasks that then lead to superior organizational performance. It has also been argued that it is not enough for TMTs to assemble a set of capabilities; they must utilize those capabilities in taking strategic actions informed by interpretations of their business environments and the prevailing situations in their organizations (Kaplan, 2005). The specific objective of the study was to assess the effect of top management team cognitive characteristics on organizational performance of independent regulatory agencies in Kenya. To achieve these objectives, the study adopted descriptive crosssectional research design. The target population of the study was all the twenty-three independent regulatory agencies currently existing in Kenya. Due to the uniqueness of each independent regulatory agency and the distinct roles played by each top management team member in their organization, the study adopted a census survey of all the top management team members in all the twenty-three in dependent regulatory agencies in order to capture the required information. Primary data was gathered using structured questionnaire administered through drop and pick later method. Descriptive statistics was then used to summarize the survey data into percentages, frequencies, means and standard deviations. Inferential statistics employed regression analysis to test hypothesis and draw conclusions. The findings of the study showed that top management team cognitive characteristics significantly affect organizational performance. The study recommends that the recruitment process of the TMTs should include cognitive characteristics as requirements apart from the normal demographic characteristic requirements mostly in use
Description
Article
Keywords
Top Management Team Cognitive Characteristics, Independent Regulatory Agencies, Organizational Performance
Citation
Oketch, J. O., Kilika, J. M., & Kinyua, G. M. (2020). Top Management Team Cognitive Characteristics and Organizational Performance. Journal of Business and Management, 22(2), 22-30.