The Functions of the Management Board

The Functions of the Management Board

Whether it’s setting strategies, overseeing management and finances, fostering relationships with communities, or establishing ethical standards and values, the functions of the management board are many and diverse. Boards choose a CEO and monitor their progress; they decide the direction of an organization through the development of goals, vision and strategic thrusts, as well as goals; build community relations as well as establish management guidelines for quality, governance and compliance; and deal with organizational changes that http://www.herbboardroom.com/responsibilities-of-board-of-management arise from changing circumstances or regulatory pressures.

As fiduciaries boards are legally accountable for representing shareholders and owners as well as investors. They determine policies for dividends and payouts. They also hire/fire and reward management. They also establish corporate rules. They also maintain strong communication with management and are the ones who represent management to the company. The chair of the Board, usually elected by the board members is the leader of the entire board. They are usually non-executive directors (NEDs) who act as the intermediary between the chief executive officer and the board.

The primary function of the board is to serve as an overseer of the company. However there are some boards that get into management, attempting to do things by themselves instead of ensuring that activities are in conformity with the organization’s commitment to its mission. Boards must focus on balancing their oversight function with their responsibility for the success of the organization. The most efficient method to do this is through the use of committees. Audit or compensation and nominating committees, for example, have become popular methods to look at complicated issues. These committees report their findings to the entire board.

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