Top Management Team Diversity and Performance of Christian Churches

Abstract

This study investigates the relationship of top management team (TMT) diversity with performance of Christian churches, a particular type of nonprofit and voluntary organization. Performance measures were based on applying the balanced scorecard to the church setting. Within a sample of 82 churches from a single denomination, the authors found that greater diversity in the spiritual maturity and relationships of TMT members with the senior pastor was positively related with growth in church attendance. TMT diversity in age was positively related with Sunday school attendance. Surprisingly, diversity in TMT attitudes and tenure were positively related with efficiency of internal processes. Greater diversity in tenure in the TMT was negatively related with growth in church revenues. The findings suggest that diversity in the church TMT’s may pay off in organizational growth, increased constituent learning, and better operating efficiency, but it may have negative impacts on growth in revenues. The findings related to efficiency suggest that TMT diversity may have different effects within nonprofit settings than it does within commercial business organizations.