Functional Background as A Determinant of Executives' Selective Perception

What executives perceive influences their actions. These actions in turn affect the nature and performance of their organizations. Thus, what executives perceive is of interest to organizational scientists, to strategic management researchers, and to organizational stakeholders. A study examined executive perception. The results of the field study indicate that, contrary to popular belief, functional area work experience has no effect on which changes top executives perceive in their organizations' environments. Functional background, however, does have an effect on which changes they perceive in their organizations' effectiveness.