Upper echelons theory

The upper echelons theory is a management theory published by Donald C. Hambrick and P. Mason in 1984.[1] It states that organizational outcomes are partially predicted by managerial background characteristics of the top level management team.[1]

History

Donald C. Hambrick, a strategic management professor and P. Mason first published an article about the upper echelon perspective in 1984. The article is cited over 10,000 times [2] and several additional articles in this field of research have been published over the last decades.[3]

Premise

The theory tries to explain a correlation between the organizational outcome and managerial background characteristics.

Application fields

The theory is used in human resource management as a framework helping to hire new executives. In addition to that, the theory can be used to analyze other market competitors or listed companies and predict future strategic decisions of CEOs.

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See also

References

  1. Hambrick, Donald C.; Mason, Phyllis A. (1984). "Upper Echelons: The Organization as a Reflection of Its Top Managers". The Academy of Management Review. 9 (2): 193–206. doi:10.2307/258434. ISSN 0363-7425. JSTOR 258434.
  2. "Upper Echelons: The Organization as a Reflection of Its Top Managers". scholar.google.com.
  3. Carpenter, Mason A.; Geletkanycz, Marta A.; Sanders, Wm. Gerard (23 June 2016). "Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition". Journal of Management. 30 (6): 749–778. doi:10.1016/j.jm.2004.06.001.
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