Anatomy of Top Management Team

This document explores the structures, characteristics, and influence of top management teams on strategic decision-making. It provides insights into the role of the top management team in shaping business culture and formulating strategies. The document also focuses on the top management team of Frosty Food Limited and how they ensure efficient business operations and sustainable growth.

Anatomy of top management team 0
Anatomy of top management team
Student’s Name
7/4/2019

Anatomy of top management team 1
Contents
Introduction................................................................................................................................2
Structures of top management team...........................................................................................3
Characteristics of the top management team.............................................................................6
The influence of TMT characteristics on strategic decision-making.........................................8
Conclusion................................................................................................................................10
References................................................................................................................................12
Appendices...............................................................................................................................15

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Introduction
Strategic decision making is the crucial element for sustainability and the expansion
of the business. Moreover, the topmost management team establishes the base for decision
making. In today’s complex business environment the enterprise management has moved
from engaging leader oriented approaches to co-management strategies in the form of the top
management team (Wheelen, Hunger, Hoffman & Bamford, 2017).
The upper management team plays a major part in shaping the business culture and
formulation of the strategies that will aid in achieving the objectives of the organization. It
focuses on proper delegation of the authorities and the development of the strategies that do
not hamper the operations due to the fluctuations in the market. The highest management
team focuses on developing a clear vision and analyzing the new opportunities for the
business (Ridge & Ingram, 2017).
The top management team of Frosty Food Limited plays the major in designing the
policies and the strategies that help in effectively running of the company. The topmost
management team ensures that all the employees are integrating their efforts and conducting
ethical business practices to fulfil the vision of the organization. It ensures that all the
employees deliver excellent customer service and proper functioning of all the departments.
The further paragraphs of the report will cover the characteristics of the topmost management
team and the involvement of the top management team in the decision-making process. It will
also cover the strategic choices taken by the topmost management team to ensure the efficient
functioning of the business operations and sustainable growth of the business (Tulung &
Ramdani, 2016).

Anatomy of top management team 3
Structures of the top management team
The topmost management team is the highest level under the hierarchy of the
organization and consist of the great ranking employees that work collectively to ensure the
efficiency of the organization and efficiently manages the operations of the corporate. The
top management of Frosty Food Limited consists of the president of the company, chief
executive officer, chief operating officer, chief marketing and financial officer and the chief
technology officer (Refer to Appendices 1). It also includes the director of the human
resource. The members have the everyday obligation to oversee different people and perform
the responsibility regarding business activities. The top management at Frosty Food Limited
is responsible for accumulating the business procedures and ensures that the objectives of the
organization are achieved (Dezso, Ross & Uribe, 2016).
The top management team of our company entails of a few strategic leaders who are
responsible for overall business operations and sustainability of the business for a longer
period of time. It comprises of one president and six executive officers. The main
responsibility of the president is to oversee the client’s accounts and manages staff
operations. The president focuses on developing a good interpersonal relationship with the
internal staff and the external stakeholders (Ruppel, Lawrence & Tworoger, 2016).
The chief executive officer is the most eldest member of the organization and is
considered as the leader. CEO focuses on reporting the significant data and the choices to the
board of the directors. The chief executive officer manages the operation of all the
departments including sales, marketing, and production. Here the CEO develops the
strategies to upon the vision and the mission of the organization and is considered as the face
of the company to endeavour network and develop public relations. He focuses on developing
the social culture of the organization and closely works with the chief financial officer to

Anatomy of top management team 4
advance the monetary performance of the company. The managerial skills and the
administrative experience allow the CEO to apply its strategic thinking and achieve the
objectives of the business (Hermano & Martin-Cruz, 2016).
The chief financial officer manages the budget of the organization and effectively
manages the cost of the company. The financial officer maintains the relationship with the
banks and the investors. I hold the position of financial officer in my organization and handle
the business money. I emphasize on maximizing the value of the shareholders and instate
taxes and financial principles to effectively control the business. I undertake the major role in
maintaining the capital cost of the company and balances between the debt and the equity
ratio. I develop financial strategies and annual plans for the company through the process of
budgeting. I am also charged for filling the necessary documents and the statements
according to the regulatory bodies to comprehend the performance of the firm. I perform the
function of managing the accounts and the tax system by participating in the process of
reviewing and find calculated ways to lessen taxes and access financial risk.
The marketing officer plays a major role in translating the vision into the marketing
campaign and creates awareness for the brand. The main role of the marketing officer is to
create brand awareness by using social media tools and developing connections with the
influencer. It reviews all the marketing strategies and streamlines the process to reduce the
cost of the company and maximum results can be achieved (Wu, Wu, Tsai & Li, 2017).
The chief technological officer develops the strategies and manages the business
technology required for research and development. The manager uses the technology to
promote the products to the external products. It works with the producers and optimizes the
production process by developing innovative methods after conducting the research of the
competitive market (Diaz-Fernandez, Gonzalez-Rodríguez & Simonetti, 2015).

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The director of the human resource focuses on recruiting the best employees for the
company and reduction in the labour turnover by employing all the benefits to the employees
and increasing their level of satisfaction. It audits the staff work committees and looks after
the profitability and the quality of the employees. It guides the managers to effectively
implement change in the organization and guides the action of the employees (Walker,
Machold & Ahmed, 2015).
Each executive officer has employees working under which are at the middle and the
lower levels. All the officers have separate departments and the CEO of the organization
effectively manages all the departments.
The main part of all the top management team is to delegate leadership in their
departments and fulfils the overall purposes of the company. All the topmost management
team members apply transactional leadership theory under which it encourages and motivates
the employees by designing rewards and supporting them at all the levels. The top
management team involves the employees to make the decisions and directs the actions
towards the achievement of the common goals (Frieder, Wang & Oh, 2018). The top
management team is considered as the strategic fit for the company because the team
crucially analyses the current situation and makes the decision that affects the whole
performance of the company. The top management team takes the strategic decisions because
they possess the skills and characteristics to influence the company and has gone through
various stages to become capable of taking the strategic decisions and influencing the actions
of all the members in the company (Georgakakis, Greve & Ruigrok, 2017).
Characteristics of the top management team
The top management team members actively adjust the strategies to capture the
opportunities and manage the unexpected challenges in the business. It focuses on

Anatomy of top management team 6
maintaining a positive outlook towards the adoption of the change and is flexible in the
mindset to apply the new approaches and the ideas. The top management team effectively
applies the change in the organization and focuses on reducing the resistance of the
employees towards the adoption of the change. The managers develop the strategies by
analyzing the business environment and make the decisions that are favourable for all
(Hensel & Visser, 2018).
The top management team members are recognized as a powerful communicator
because it effectively communicates will all the employees at all the levels and regulates open
communication system to support the employees and engages them in the decision making.
Through the designing of an open communication system, the leaders receive constructive
ideas from the employees and help them to create innovative strategies for the company
(Hensel & Visser, 2018).
The members effectively delegate responsibility and authority. It does not over
empower or overwhelm the employees and expects that the employees will be responsible
and accountable to their immediate bosses and the accountability flows from lower to the
higher levels of management.
The top-level managers have the charisma of confidentially motivating the employees
to achieve the vision of the company. They have the enthusiasm for doing the right things and
attain the objectives in the best manner. The manager sets the vision of the organization and
effectively integrates the efforts towards the achievement of the common goals. They have
the capability to foresee future goals and develop a vision that does not hamper the growth of
the business. It inspires the workforce and creates optimistic working culture. The visionary
quality of the leaders allows them to develop the strategies that are best suitable in the agile
market (Northouse, 2017).

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The top management team fosters on creativity and innovation and encourages the
employees to be persistent in adopting change in the organization and derives an innovative
solution for managing the complexities of the business. The higher management team
manages the complexities of the business and takes the decision in supporting to the changing
environment. It focuses on building teamwork to manage the diverse workforce and manage
the skills and personalities (Nichols, 2016).
The top management team consists of well-educated managers that are able to resolve
the complexity of the business by deriving innovative solutions and achieve the objectives
efficiently and minimizes the political process. They have the ability to take rational
decisions and effectively communicate with the employees through the decentralized
hierarchy. The top management team comprises of competitive aggressiveness so as to
provide long term advantage in the competitive market. It involves specific information from
the middle managers and the lower managers to take the decisions (Nichols, 2016).
The age of the members is considered as another characteristic that plays a major role
in taking strategic decisions. It is analyzed that the age of 40 is considered a suitable age for
the top management team. At this age, the individual has developed its thoughts and have the
experience to take a thoughtful decision. The perceptions and the knowledge of the top
management allow taking the decisions that are favourable for the company. Frosty Food
Limited has also developed the top management team comprising of the middle age group
because at this stage the members are able to perform its duties well and are able to undertake
chief conduct. It allows the members to deliver effective leadership and motivate all the
members to work towards the common goal (Wheelen, Hunger, Hoffman & Bamford, 2017).
The education of the highest management team is considered as a factor. The
members are given the training to design the best corporate techniques and allows the

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members to make improved decision making and develop the procedures that actualize with
the need of the company. It allows the members to face the challenges and provide a better
incentive to the company (Rao & Tilt, 2016).
The gender of the employees also plays a major role. It is analyzed that the female
team members are more sympathetic and gets influenced by the surroundings. They commit
more opportunity to the choice procedure. In comparison to the female team members, the
male members are objective, self-assured and sensible. They are able to make more rational
decisions for the company (Ruiz-Jimenez & Del Mar Fuentes-Fuentes, 2016).
The members of the board are selected on the basis of the functional background to select the
best members who have the expertise in the specific fields. The tenure of the team also shows
a significant role in creating strategic choices for the company.
The influence of TMT characteristics on strategic decision-making
Decision making is the art of defining the substitutes and selecting the best strategies
for the company. The focus here is to apply the best leadership style and discover the most
ideal strategy for the company. Frosty Food Limited focuses on embracing diversity at the
workplace and fosters positive result for the company through the inclusion of mixed
functional background and the expertise in the respective fields. The company has hired the
employees of the different age group that allows collecting the ideas of all the age groups and
the gender mix to properly analyze the data and develop the appropriate strategies for the
company (Shin, Sung, Choi & Kim, 2015).
The highest management team plays a major part in taking the strategic choices that
not only shape the future of the company but also helps the company in the existence of the
business. The decision-making behaviours of the top management team depend upon

Anatomy of top management team 9
objective facts and the prevailing conditions of the economy and the environment. The
decisions are also based upon the personal factors i.e. the cognitive ability and the personality
behaviours of the highest management team. The functional background and the skill of the
top managers play the role in undertaking the best strategic decisions that are favourable for
the company and the employees (Lyubovnikova, Legood, Turner, & Mamakouka, 2017).
The top management team members perform the role based upon their function
background. In Frosty Food Limited the marketing officer ensures that the company takes the
decision that allows maximizing the brand awareness and development of the campaigns that
enables them to interact with the customers and develop strong brand recognition. The
marketing manager analyses the environment and selects the places to turn the campaign
successful and increase the footfall of the customers (Diaz‐Fernandez, Gonzalez‐Rodriguez
& Simonetti, 2018).
I as a financial officer focus on taking the investment decisions for the company. I
have the competency to develop an investment plan for the company by analyzing the cost
structures and develop the budget plans that are feasible for the company. My main focus is
to cut the investment and the increase in the profitability of the business. For such strategic
decisions, I focus on reducing the variable expenses of the company and maintain the capital
cost. I have to keep the balance between the debt and the equity ratio. The main strategic
decisions also involve conducting the business ethically by involving false trading and
showing the actual figures to the stakeholders. As a financial officer, I take the decisions in
regard to maximizing the value of the shareholders and also conduct the activities that help in
sustaining long term relations with the banks and other financial institutions. The main
strategic decisions also involve selecting the best financial institution that will provide the
credit at the right time and reduces the financial risk of the business. I have the quality of

Anatomy of top management team 10
making the proper management of the accounts and providing financial security to the
company.
Proper management of the accounts of the business allows the company to evaluate
the net worth and attract the investors for the further growth of the business. I have the ability
to attract investors and convincing them to invest in the business. Through the application of
the budgeting techniques, I develop the annual plans and the financial strategies that allow
maximizing the profit of the company and also show a part in reducing the taxes of the
business. I focus on developing the strategic ways that allow the company to reduce the
financial and risk and minimize the tax of the company.
It is analyzed that the topmost management team shows a major part in taking the
strategic decisions that help in growing the business and aligning the actions of all the
members towards the achievement of the common goal. In the company, all the top managers
have the ability to persuade the members of their department and align their efforts towards
the goals of the company. The strategic decisions give shape to the company and help in
determining the future sustainability of the business (Heavey & Simsek, 2017).
Conclusion
From the above discussion, it is critical to note that the topmost management team
entails of the associates that have the competency and the characteristics to motivate the
members and develop the strategies that provide the maximum gain to the company. It is
analyzed that all the members at the top management perform their functional role and
collectively focus on achieving the goals of the company. The team ensures that all the
actions of the members are in line with the developed strategies and applies the transactional
style of leadership that helps in motivating the members and creates a working culture at the
company.

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Under the hierarchy of the business, the topmost management team members occupy
the highest level position and ensure that all the departments are coordinated to enhance the
growth of the business. The members are responsible for the operation of all the business
activities and maximize the profitability of the business.
It is analyzed from the above that the top management team performs the major part
in strategic decision making and develops the strategies that maximize the profitability of the
business and ensures long term sustainability of the company. Every department consists of
the senior officer that aligns the activities of its department with the goals of the company. I
as a financial officer perform the role of making the financial strategies that help in
maintaining the capital of the company and the creation of a balance between the debt-equity
ratios. I also apply my skills to attract financial investors and maximize the value of the
stakeholders.
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Appendices