Human Resources And Its Effects On Organization Performance Essay

745 Words Nov 15th, 2016 3 Pages

This article focuses on human resources and their effects on firms by bringing with them their knowledge, experience, and other factors to increase organizational performance. They give particular focus to the people and groups responsible for running the organization, the CEO and top management teams (TMTs), and how they themselves as well as their interaction with each other can influence organizational performance. The authors gathered information on companies with these variables and who were still in business up to 2010.

Listing of variables:

The dependent variable of this study is organization performance (sustainability, growth, and internationalization) and the independent variables are the CEO (age, tenure, and compensation) and top management teams (scale and network). Their hypotheses for the test were: H1- the CEO has a positive effect on organization performance, H2- top management teams have a positive effect on organization performance, and H3- the interactions of both the CEO and total management teams have positive effects on organization performance

Author 's conclusion:

They found that, even though both have differing strengths, CEOs and top management teams both had a positive effect on organizational performance. They also realized that the CEO has immense power within the company and, therefore, can dictate what the top management team does, which means that the CEO needs to be extremely responsible with the organizations resources and…

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