The Influence Of Top Management

INTRODUCTION

Performance of business organisations is dependent on a wide variety of factors and forces. It is essential for companies, regardless of the industry of their operations to identify these factors and closely analyse them (Nielsen & Nielsen, 2013). By studying these, relevant information regarding the firm's operations as well as the market, in general, can be obtained. Access to such information can be the differentiating factor for an organisation to sustain and succeed in the market. In this study, the researcher presents an analysis of the impact of the characteristics of top management on the performance of the company. Herein the researcher used data of US-based telecom companies. The data has been analysed through quantitative methods like regression and ANOVA. For those seeking additional insights and guidance, business dissertation help can provide valuable support in navigating complex analyses and methodologies.

LITERATURE REVIEW

Business organisations and their operations and well as efficiency and effectiveness are affected by a large number of factors and forces. In this regard, one of the critical aspects that influence business performance is that of the traits and characteristics of the top management. In this regard, the study by Fujianti (2018), used purposive sampling technique wherein samples of 40 companies from different sectors was taken. According to the author, age and experience of the top managers have a crucial role to play in overall functioning and operations of the company. However, this study failed to provide any information or data about the impact of gender of the top managers on the company's performance. As per (Shukeri, Shin, & Shaari, 2012), personal characteristics and traits of top managers are of great importance and value to a firm, regardless of the industry of its operations. This is because personal characteristics define the decision-making skills of the managers; and thus their ability to enable the company to perform better than its competitors (Peterson, Galvin, & Lange, 2012).

Ujunwa (2012) highlighted the importance of educational background and qualifications of the top managers as one of the critical traits that influence the overall performance of an organisation. If the top managers are well-educated, then there are chances that their vision will be much broader and therefore will be able to guide and manage the company in a better and more effective manner. However, the results of Vo & Phan (2013) showed otherwise. The authors determined that the education level of the top managers, although it is an essential and detrimental factor that influences business' performance, it is not a very crucial one at that.

Age of the participants, according to Li (2013), is also one of the traits of the top managers, which influences the operations and performance of the company. According to the authors, middle-aged top managers were able to provide much effective direction to the company, thereby enhancing its performance and also improving the sustainability of the firm in the market. Those organisations who hired middle-aged managers for the top positions found it much easier to achieve their targets. The authors suggested that the vision and experience of these managers was a crucial combination that enabled the organisations to perform better and achieve their goals and targets.

Even though the vast majority of the past studies have shown traits and characteristics possessed by the top managers has a significant impact on the overall performance of the company. However, the study of Stephen et al. (2018) presented inconclusive results. According to the authors, some of their participants stated a positive relationship between top manager traits and organisational performance; while on the other hand, some of the participants did not report such results. The reason for such results can be the fact that every manager or leader has a different vision for the firm and therefore tries to take the company in different directions. This influences the operation of the firm, and also their ability to lead the company efficiently and effectively. Based on this aspect, it may be appropriate to states that traits of the top managers provide the company with enough ability to oversee and control all its operations. This way, the organisation can perform better and achieve its mission and vision.

RESEARCH HYPOTHESES

Businesses are affected by a whole range of factors and forces. Some of the critical factors that influence the performance of firms are the traits and characteristics of the top management. The following hypotheses are used in the current study:

H0: There is no significant impact of the characteristics of top management on company performance. H1: There is a significant impact of the characteristics of top management on company performance.

RESEARCH DESIGN AND METHOD FOR DATA ANALYSIS

For conducting this study, the researcher used quantitative design. The main reason for selecting this design was the fact that by using this design, the researcher was able to present the data in a manner that could be easily read and understood by the readers. Moreover, since the data was large, the best way for analysing it was through quantitative methods only.

In this study, the data was collected from the ORBIS database. Here data of 10 companies from different sectors were collected. The dependent variable for the study was market capitalisation, while the independent variables were gender, age, tenure, highest degree, experience in ICT, international experience, twitter presence and total presence on social media. The following equation was used for analysing the data.

Based on the above results, it can be said that there is no significant impact of the characteristics and traits of top managers on the performance of the companies. This way, the null hypotheses is accepted.

ETHICAL ISSUES

There were specific ethical issues and areas which the researcher paid attention to. In this regard, one of the critical ethical issues that the researcher encountered was to ensure not plagiarising the data or any other type of information used in the investigation. Herein the researcher gave due to credit to the sources and authors from where the data was collected and used. Apart from this, the researcher also paid attention to selecting highly credible sources for collecting the data. This also was an important ethical issue about the research. By managing this issue and using credible journals and other such sources, overall reliability and validity of the study were also enhanced by a high margin.

REFERENCES

• Fujianti, L. (2018). Top Management Characteristics and Company Performance: An Empirical Analysis on Public Companies Listed in the Indonesian Stock Exchange . European Research Studies Journal, 21(2), 62-76.
• Stephen, G., Senaji, T., & Kirimi, E. (2018). Top Management Team Characteristics and Firm Performance . IOSR Journal of Business and Management , 20(8), 23-26.
• Nielsen, B. B., & Nielsen, S. (2013). Top management team nationality diversity and firm performance: A multilevel study. Strategic Management Journal, 34(3), 373-382.
• Shukeri, S. N., Shin, O., & Shaari, M. S. (2012). Does board of director's characteristics affect firm performance? Evidence from Malaysian public listed companies. International Business Research, 5(9), 120.
• Peterson, S., Galvin, B., & Lange, D. (2012). CEO servant leadership: Exploring executive characteristics and firm performance. Personnel Psychology, 65(3), 565-596.
• Ujunwa, A. (2012). Board characteristics and the financial performance of Nigerian quoted firms." Corporate Governance. The international journal of business in society.
• Vo, D., & Phan, T. (2013). Corporate governance and firm performance: Empirical evidence from Vietnam. Journal of Economic Development, 7(1), 62-78.
• Li, Q. (2013). Top management attention to innovation: The role of search selection and intensity in new product introductions. Academy of Management Journal , 56(3), 893-916.

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