Inside the Boardroom

In chapter 2, I described characteristics of the TMT’s internal processes and states. Over the past 20 years, researchers have gained increased understanding of how the behavior of TMT members relates to important organizational outcomes. Most researchers have focused on outcomes that relate to (a) the quality of the TMT’s decisions, (b) the way the TMT performs as a group, and (c) the performance of the organization as a whole. Based on a thorough analysis of the available literature, some clear recommendations can be given to TMTs in practice.

First, disagreement and discussions among the TMT members during decision making are to be stimulated. Such processes, also called “task conflict,” lead to better decisions because ...

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