Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Diverse skills, personalities aid top management teams -- up to a point

02.03.2009
New INFORMS management insights

Organizations that diversify the skill levels of their top leadership benefit more than those that try too hard for similar diversity in personality, according to the Management Insights feature in the current issue of Management Science, the flagship journal of the Institute for Operations Research and the Management Sciences (INFORMS®).

Management Insights, a regular feature of the journal, is a digest of important research in business, management, operations research, and management science. It appears in every issue of the monthly journal.

"Top Management Team Diversity and Firm Performance " is by Christophe Boone of the Faculty of Applied Economics, University of Antwerpen, 2000 Antwerpen, Belgium and Walter Hendriks of the Faculty of Economics and Business Administration, Maastricht University, 6200 MD, Maastricht, The Netherlands.

An empirical analysis of 33 medium-sized Dutch and Belgian information technology (IT) firms reveals that teams with diverse expertise and work experience tend to be more effective in managing organizations, particularly when these managers cooperate and share accurate information and decision-making power.

On the other hand, analysis shows that diversity in the personalities of members of the management team hampers firm performance.

The authors found that one means of avoiding the disruptive consequences of these personality differences is to concentrate authority in the office of the CEO. But centralization of power comes at a price, because organizations must decentralize decision making to reap the full benefits of diverse expertise and experience.

In the sample examined by the authors, the mean return on sales (ROS) of IT firms with the ideal team configuration (diverse expertise and work experience, similar personalities, and decentralized decision making) was 10%, whereas the mean ROS of IT firms with the worst possible team configuration (similar expertise and work experience, diverse personalities, and decentralized decision making) was −7%.

Based on these findings, the authors suggest that management team recruiters use carefully designed personnel selection techniques screening personality and knowledge experience.

Barry List | EurekAlert!
Further information:
http://www.informs.org

More articles from Business and Finance:

nachricht Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Long-lived storage of a photonic qubit for worldwide teleportation

MPQ scientists achieve long storage times for photonic quantum bits which break the lower bound for direct teleportation in a global quantum network.

Concerning the development of quantum memories for the realization of global quantum networks, scientists of the Quantum Dynamics Division led by Professor...

Im Focus: Electromagnetic water cloak eliminates drag and wake

Detailed calculations show water cloaks are feasible with today's technology

Researchers have developed a water cloaking concept based on electromagnetic forces that could eliminate an object's wake, greatly reducing its drag while...

Im Focus: Scientists channel graphene to understand filtration and ion transport into cells

Tiny pores at a cell's entryway act as miniature bouncers, letting in some electrically charged atoms--ions--but blocking others. Operating as exquisitely sensitive filters, these "ion channels" play a critical role in biological functions such as muscle contraction and the firing of brain cells.

To rapidly transport the right ions through the cell membrane, the tiny channels rely on a complex interplay between the ions and surrounding molecules,...

Im Focus: Towards data storage at the single molecule level

The miniaturization of the current technology of storage media is hindered by fundamental limits of quantum mechanics. A new approach consists in using so-called spin-crossover molecules as the smallest possible storage unit. Similar to normal hard drives, these special molecules can save information via their magnetic state. A research team from Kiel University has now managed to successfully place a new class of spin-crossover molecules onto a surface and to improve the molecule’s storage capacity. The storage density of conventional hard drives could therefore theoretically be increased by more than one hundred fold. The study has been published in the scientific journal Nano Letters.

Over the past few years, the building blocks of storage media have gotten ever smaller. But further miniaturization of the current technology is hindered by...

Im Focus: Successful Mechanical Testing of Nanowires

With innovative experiments, researchers at the Helmholtz-Zentrums Geesthacht and the Technical University Hamburg unravel why tiny metallic structures are extremely strong

Light-weight and simultaneously strong – porous metallic nanomaterials promise interesting applications as, for instance, for future aeroplanes with enhanced...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

See, understand and experience the work of the future

11.12.2017 | Event News

Innovative strategies to tackle parasitic worms

08.12.2017 | Event News

AKL’18: The opportunities and challenges of digitalization in the laser industry

07.12.2017 | Event News

 
Latest News

Plasmonic biosensors enable development of new easy-to-use health tests

14.12.2017 | Health and Medicine

New type of smart windows use liquid to switch from clear to reflective

14.12.2017 | Physics and Astronomy

BigH1 -- The key histone for male fertility

14.12.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>