Management Team Essay

Many scholars believe that â€Å"there is a strong connection between the growth potential of a venture and the quality of its management team†, (Timmons and Spinelli, 2009). Describe what is meant by â€Å"management team† philosophy and attitude of entrepreneurial ventures that will eventually contribute to business venture growth? From Collins dictionaries the management team is defined as â€Å"a team of managers in charge of direction a company, business, etc. Wikipedia define the management team as â€Å"senior management, executive management, or management team is generally a team of individuals at the highest level of organizational†. For general definition, management team is a set of peoples that come from various function or responsibility that responsible to manage the organization. â€Å"there is a strong connection between the growth potential of a venture and the quality of its management team†, (Timmons and Spinelli, 2009). To relate this statement, I had found some statement from (Krishnan et al. 1997, p. 363). Differences between the top management teams on important dimensions such as backgrounds of managers has more potential to create unique value because it makes the combined organization stronger by offsetting weaknesses in both firms, thereby creating or maintaining a competitive advantage I also refer to www. jeffcobizjournal. com that mentioned about â€Å"a bad manager will make bad decisions, will hurt the morale of the employees and your relationship with customers, you can’t afford to keep them around†. This situation can give impact the organization directly, so it is really importance to have good quality of management team in order to ensure growth potential to organization business. This idea clearly directed the right people for the right jobs its crucial during the selecting the management team in the organization. Cited from the Marriott management philosophy â€Å"’A business succeeds not because it is long established or because it is big, but because there are men and women in it who live it, sleep it, dream it, and build great future plans for it. † Robinson Finkelstein, Hambrick, and Cannella (2009: 3) wrote, â€Å"The small group of people at the top of an organization can dramatically affect organizational outcomes. Becker (1964), training and wages for experiences and skilled managers can be seen as a firm’s investment in human capital, expecting to benefit from higher productivity and added economic value. From this statement we can relate the bad impact of the small group of people to it is because of the individual factor also. Research shows that effective communication in a team is a critical factor determining team performance (Hitt, et al. 2006). Robinson et al. found that an entrepreneurial attitude orientation scale significantly differentiated between entrepreneurs and non-entrepreneurs. Therefore, it is mentioned that: attitude towards entrepreneurship is a function of the demographic and psychological characteristics and their interaction. Baum, Locke and Smith (2001) reported significant correlations between self-efficacy and venture growth, Douglas and Shepherd (2005) define entrepreneurial capital as the composite of the individual’s entrepreneurial attitudes and abilities. Entrepreneurial attitudes are those toward autonomy, risk, work, income and (other net) perquisites, while entrepreneurial abilities include opportunity recognition, viability screening, and creative problem solving skills. Hofer and Sandberg (Summer 1987), stated there are three factors have a substantial impact on a new venture’s performance. In order of importance, these factors affecting new venture success are (1) the structure of the industry entered, (2) the new venture’s business strategy, and (3) behavioral characteristics of the entrepreneur. My focus will be on the behavioral characteristics of entrepreneur. Sources from K. Axelton, â€Å"Fever Pitch,† Entrepreneur (December 2004), p. 74; N. L. Torres, â€Å"Think Outside the Box,† Entrepreneur (February 2004), pp. 108–111; A. Pennington, â€Å"Una Cassidy,† Entrepreneur (November 2003), p. 24 found four entrepreneurial characteristics are key to a new venture’s success. Successful entrepreneurs have: 1) the ability to identify potential venture opportunities better than most people. 2) a sense of urgency that makes them action oriented, 3) switch the niche, 4) borrow a business model.