Abstract
Previous strategic management researchers have argued that TMT psychological characteristics have the potential to significantly affect organizational performance. Some of these previous scholars have argued that inquiry into the influence of TMT psychological characteristics on organizational performance should start by examining the process by which traits affect behaviours of the TMTs and hence the outcomes of their actions. The specific objective of the study was to examine the effect of top management team psychological characteristics on organizational performance of the independent regulatory agencies in Kenya. To achieve this objective, the study adopted descriptive cross-sectional research design. The target population of the study was the twenty-three independent regulatory agencies currently existing in Kenya. Due to the uniqueness of each independent regulatory agency and the distinct roles played by each top management team member in their organization, the study adopted a census survey of all the top management team members in all the twenty-three independent regulatory agencies in order to capture the required information. Primary data was gathered using structured questionnaire administered through drop and pick later method. Descriptive statistics was then used to summarize the survey data into percentages, frequencies, means and standard deviations. Inferential statistics employed regression analysis to test hypothesis and draw conclusions. The findings of the study showed that top management team psychological characteristics significantly affect organizational performance. The study recommends that the recruitment process of the TMTs should include psychological characteristics as requirements apart from the normal demographic characteristic requirements mostly in use.
Highlights
There has been growing concern amongst strategic management researchers and practitioners alike to endeavour to understand reasons that lead to some organizations achieving superior organizational outcomes than others even if they are operating within the same or similar business environments [22]
The findings of the current study are consistent with the findings of Kinuu [12] that top management team (TMT) psychological characteristics had a significant effect on efficient and effective performance of companies listed in the Nairobi Securities Exchange
The descriptive statistics of the study for TMT psychological characteristics indicated that except for emotional stability and optimism, all the sub-variables under TMT psychological characteristics had aggregate means scores greater than 4.0, with the overall aggregate mean score for TMT psychological characteristics being 4.175. This showed that the respondents agreed to a large extent that the attributes of the study under TMT psychological characteristics applied to their independent regulatory agencies while the overall aggregate standard deviation of 0.745 indicates that there were considerable variations within and among the independent regulatory agencies
Summary
There has been growing concern amongst strategic management researchers and practitioners alike to endeavour to understand reasons that lead to some organizations achieving superior organizational outcomes than others even if they are operating within the same or similar business environments [22]. Some previous researchers in psychological resource theories have asserted that top management team (TMT) psychological characteristics can give insights into employees’ motivation to acquire, maintain, and build capabilities essential for achieving superior organizational performance. The common titles among the TMTs are chairman/chairperson, president, chief executive officer, managing director, executive directors, and executive vice presidents among others These positions are responsible for either the entire organizations or departments/units [17]. Top management teams translate policies formulated by the board of directors of their organizations into goals, objectives, strategies and projects meant to steer their organizations to success in both the present and the future They make decisions that affect everyone in their organizations or in key departments/units and navigate these organizations to either successes or failures [24]
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