Supervisory Board group dynamics as a determinant of team and company effectiveness. Empirical evidence from Poland
Abstract
The structure and functioning of Supervisory Board are the most important determinants of team effectiveness and the performance of a company. At the same time ability to control and shape Top Management Team (TMT) effectiveness seems to be crucial for investors and shareholders. In traditional concepts, TMT effectiveness is related to the structure of the managing group, however the inconsistency of empirical studies implies further search for other explanations. One of them is a concept of group dynamics, which emphasizes indirectness of the relation between group characteristics and group effectiveness, as well as the importance of group processes, such as effort norms, cognitive conflict or group cohesiveness. The study conducted among companies listed on the main market of Warsaw Stock Exchange (Poland) enabled the construction of model illustrating the above relations. Moreover, the significance of group processes for team effectiveness was explored. The paper has been prepared in the framework of research project which was funded by the National Science Centre, decision no. UMO-2011/01/N/HS4/02166.References
Bermig, A. & Frick, B. (2010). Board size, board composition and firm performance: Empirical evidence from Germany. Working Papers. http://ssrn.com/abstract=1623103, 15.01.2011, 1 - 43.
Bohdanowicz L. (2010), Wpływ liczebności rad nadzorczych i zarządów spółek publicznych na wyniki spółek, Master of Business Administration, Vol. 3, No. 104, pp. 18-33.
Carpenter M. A. & Fredrickson J. W. (2001), Top management teams, global strategic posture, and the moderating role of uncertainty, Academy of Management Journal, Vol. 44, pp. 533-545.
Carpenter M., A. (2002), The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance, Strategic Management Journal, Vol. 23, pp. 275-284.
Edmondson, A., C., Roberto, M., A., Watkins, M., D. (2003). A dynamic model of top management team effectiveness: managing unstructured task streams. The Leadership Quarterly, 14, 297 - 325.
Elsayed K. (2011), Board size and corporate performance: the missing role of board leadership structure, Journal of Management and Governance, Vol. 15, No. 3, pp. 1203-1214.
Forbes D.P. & Milliken F. J. (1999), Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups, Academy of Management Review, Vol. 24, No. 3, pp. 489-505.
Hambrick D.& Mason P. A. (1984), Upper Echelons: The organization as a reflection of its Top Managers, Academy of Management Review, Vol. 9, No. 2, pp. 193-206.
Jackson, S., E. (1992). Consequences of Group Composition for the Interpersonal Dynamics of Strategic Issue Processing. In: P. Shrivastava, A. Huff, J. Dutton (Eds.), Advances in strategic management. Volume 8 (pp. 345-382). A Research Annual.
Leblanc, R. & Gillies, J. (2003). The coming revolution in Corporate Governance. Ivey Business Journal, 68(1), 1 - 11.
McIntyre M. L., Murphy S. A., Mitchell P. (2007), The top team: examining board composition and firm performance, Corporate Governance, Vol. 7, No. 5, pp. 547-561.
Murphy, S., A. & McIntyre, M., L. (2007). Board of directors performance: a group dynamics perspective. Corporate Governance, 7(2), 209 - 224.
Nadler, D., A. (2004). Building better boards. Harvard Business Review, 82(5), 102 - 111.
Peszko A. (2006), Rada Nadzorcza w procesie zarządzania przedsiębiorstwem, Difin, Warszawa.
Tuggle C. S., Schnatterly K., Johnson R. A. (2010), Attention patterns in the boardroom: How board composition and processes affect discussion of entrepreneurial issues, Academy of Management Journal, 53(3).
Van der Walt N., Ingley C., Shergill G.S. i Townsend A. (2006), Board configuration: are diverse boards better boards?, Corporate Governance, Vol. 6, pp. 129-147.
Van Ees H., Postman T. J. B. M., Sterken E. (2003), Board characteristics and corporate performance in The Netherlands, East Economic Journal, Vol. 29, No. 1, pp. 48-53.
Van-Ness R. K., Miesing P., Kang J. (2010), Board of Directors composition and financial performance in Sarbenes-Oxley world, Journal of Academy of Business and Economics, Vol. 10, No. 5, pp. 56-72.
The journal is published under the terms of the Creative Commons Attribution (CC BY) License which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Copyright on any research article in a journal published by a Journal is retained by the author(s). Authors grant Washington Institute of China Studies a license to publish the article and identify itself as the original publisher.
The Creative Commons Attribution License (CC BY) allows users to copy, distribute and transmit an article, adapt the article and make commercial use of the article. The CC BY license permits commercial and non-commercial re-use of an open access article, as long as the author is properly attributed.
