The Upper Echelon Theory connects the attributes of company performance and top management employee. Additionally, this theory argues that the attributes of a certain person affect the attitudes and preferences of top members and the group dynamics. The theory recommends that the organizational results are the outcome of the tactical choices that the managers make.
The idea that the worths, objectives, and goals of leading management affected organization’s culture and systems can be proven by many corporations from various markets that have actually gotten credibility and credibility in the market for providing excellent products and quality services (Coyle-Shapiro, 2005).
Those companies have good historic backgrounds and presently possess excellent objectives and visions for their companies.
The objectives and values of a particular company figure out the competitive strategy of the company as recommended by the theory. Apparently, the prominent organizations that have been consisted of on the lists of successful companies portray excellence in terms of employee line-ups and efficiency. Individuals who are extremely competent and possess strong determination are usually discovered operating in these corporations.
To put it simply, the people on the leading management could anticipate the success and future status of the company based upon the worths and goals that the company would like to achieve in every project. On the contrary to the theory of Hambrick and Mason, Laske and Maynes recommend that individuals have already their firm beliefs regarding certain issues prior to their participation to a company. Naturally, individuals act, talk, and behave according to the built truth that the society had supplied for them (Laske and Maynes, 2002).
In this aspect, Laske and Maynes argue that the organization may or may not stop working regardless of the worths set by the company because of the diverse personalities under that firm. The individual who works for a specific organization might do his/her job merely due to the fact that of the benefits like compensation and promo that the company can provide and not since of what the objectives that the top management want to attain for the company as a whole.
Generally, upper echelon theory proposes a good view in the organizational outcomes; however, it shows conflicts on the values that the company sets and the employees in that firm possess.
References
Coyle-Shapiro, J. (2005). The Employment Relationship. USA: Oxford University Press
Laske, O. and Maynes, B. (2002). Growing the Top Management Team: Supporting Mental Growth as a Vehicle for Promoring Organizational Learning. The Journal of Management Development. Bradford: MCB Ltd. Vol. 21
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