Research On The Relationship Between The Horizontal Distribution Of The TMT Decision-Making Power And The Effect Of Decision Making

With the complexity of the business environment and iterative update of the business model of the mobile Internet age, the organizational structure flattening has become the theme of the transformation of enterprise architecture. Managers are difficult to cope with the problems and challenges in the complex information flow with the personal knowledge. Using the top management team to make decisions is an effective way to reduce environmental complexity and ambiguity and to ease the pressure of enterprise decision. In the process of the top management team work, the team’s quick response capability and the quality of the decision depends on the reasonable power structure of the team. However, the traditional way of vertical organization structure power allocation has been unable to adapt to the modern team work mode, the allocation of power has changed from the past vertical decentralization to horizontal allocation of power, and the horizontal decentralization in executive team is more conducive to protect the effectiveness of corporate decision-making. Therefore, this study takes the horizontal distribution of the decision-making power of top management team as the research perspective combined with the Chinese culture background and introduces the concept of team identity, then, from the perspective of behavior psychology to explore the executive team decision-making process and the relationship between the horizontal distribution of the decision-making power and the effect of decision.Firstly, the study reviewed a lot of literature about Upper Echelon Theory, Social Identity Theory, decision-making power allocation, team identity, decision-making effect, etc.Through literature analysis and cross case analysis, we can realize the correspondence between theory and realityt, and construct the relationship model of the horizontal distribution of decision-making power, team identity and the effect of decision-making. Then, this research takes 65 enterprises from various industries as the research object and collected relevant data. With the statistical software of Excel, SPPS19.0, we made some statistical analysis and regression analysis of the data. Verified the relationship hypothesis of the horizontal distribution of decision-making power and the effect of decision making,and the mediating effect of team identity also be verified. Finally, the article discussesed the results of the research and management enlightenment, and criticized the shortcomings of the research.The empirical research conclusions are as follows:(1) Two indexes of horizontal centralization and participation in decision making are constructed to measure the horizontal distribution of team decision-making power; (2) The horizontal centralization of the TMT has negative effect on the team identity and the decision effect; (3) The participation in decision making of the TMT has positive effect on the improvement of the TMT team identity and the effect of decision making; (4) The horizontal centralization is negatively correlated with the speed of decision making, the participation in decision making is positively correlated with the speed of decision making; (5) The TMT team identity has a positive impact on the improvement of the decision effect; (6) In the path of the influence of the horizontal distribution of the decision-making power to the decison effect, the team identity has an intermediary role.