Five Aspects of TMT Performance

Based on a thorough review of the literature relating to TMTs, nonmanagerial teams, and organizational effectiveness, we identified five areas of TMT performance.

Company Results

As pointed out earlier, company results is the dominant TMT performance area used in prior TMT research.8 Top managers have the responsibility to guard shareholder interests and lead their companies in a financially sound way. Their incentive pay arrangements are often linked to company results.9 Therefore, it seems likely that company results are a salient TMT performance area not only for shareholders but also for other stakeholder groups such as middle managers.

Strategic Leadership

The TMT’s main duty is to make strategic decisions ...

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