Research On The Factors Affecting Decision-making And Optimization Of Decision Effect Of Top Management Team

Because of the increasing uncertainties in the business management and the increasingcomplexity of decision-making tasks, the complexity, variability and risk of thedecision-making environment have been far beyond the range of the individual’s ability.Using only personal wisdom and experience, any outstanding individual leader alone cannot make a satisfactory decision-making in a rapidly changing environment.Thus, groupdecision came into being. Modern business organizations adopt team management moreand more in the decision-making process. Team’s strategic decision effect is importanceobviously. The research of team decision-making ability is a new trend in the futureresearch.The purpose of this paper is to enhance the effect of top management team decisionmaking and thus enhance organizational performance.First, this paper carries out a detailed literature review of the definition and researchprogress of the senior management team. Two major research focuses of the seniormanagement team are founded, including feature research and operation research. It sum upthree categories of factors which influence the decision-making effect of top managementteam. The first is the team factors, including TMT staff characteristic factors, TMTstructural factors and TMT operation factors. The second is the decision factors, includingdecision-making behavior, decision-making process and decision-making organization. Thethird is other factors, including resources, environment, information, needs and theparticipation of non-decision-makers, etc. These three factors interact with each other toinfluence the decision-making effect of TMT. This research establishes a theoretical modelfor decision-making effect factors of a top management team, which provid guidance forbasic research framework of this article.Second, it is make clear that in the analysis of decision reactions and judgments themain research direction of this paper is decision factors among the three categories offactors which influence the decision-making effect of top management team. This paperadopts qualitative research methods based on interviews to determine the researchdimension. The research dimension of decision-making behavior is information sharing,joint decision-making, effective communication, decentralization. The research dimensionof decision-making organization is decision-making mechanism, the opportunity to speak,decision-making speed. It laid the theoretical foundation for subsequent quantitativeresearch.Classic questionnaires from domestic and foreign about top management team andintegration of corporate decision-making behavior are consolidated in this paper. This paperuses semi-structured questionnaire to get the raw data, uses exploratory factor analysis and confirmatory factor analysis to amend scales, and uses structural equation modeling andmultiple regression analysis to verify the relationship between information sharing, jointdecision-making, effective communication, decentralization, decision-making mechanism,the speech timing, decision-making speed and decision-making effect. The top managementteam’s leadership style plays a mediated and moderating role in these relationships. Thispaper also reveals the mechanism of action between decision-making process,decision-making behavior and decision-making effect. This paper provides empiricalfoundation for how to improve the effect of the decision-making by adjusting thedecision-making behavior and process.Third, this paper builts a five-stage model of top management team decision-makingbased on the domestic and foreign research of enterprise decision-making process. Thispaper uses group decision theory and method to disassemble typical group activities indecision-making process. This paper analys the organizational processes of topmanagement teams in group decision-making from decision-making rights,decision-making criteria and decision-making methods. This paper focuses on the use ofsubjective and objective weighting method to improve comprehensive and decision makers’right and decision criteria weights, and uses the common method of TOPSIS combined withweighted Broda to achieve merit in Multiple Attribute Decision Making. Countermeasuresand suggestions are put forward about how to Support the group decision-making of topmanagement team.These provide new ideas for future research about top management andbusiness decisions.