[1] It states that organizational outcomes are partially predicted by managerial background characteristics of the top level management team.
[1] Donald C. Hambrick, a strategic management professor and P. Mason first published an article about the upper echelon perspective in 1984.
[3] The theory tries to explain a correlation between the organizational outcome and managerial background characteristics.
The theory is used in human resource management as a framework helping to hire new executives.
In addition to that, the theory can be used to analyze other market competitors or listed companies and predict future strategic decisions of CEOs.