The Functions of the Management Board
It’s about setting strategies, overseeing management or finances, fostering relationships with communities or establishing ethical standards and values, the roles of the management board are numerous and varied. Boards elect a CEO, and monitor their progress; they set the direction of an organization through the development of a vision, mission and strategic goals; develop relationships with the community as well as establish management guidelines for quality, governance and compliance; and take action to address any organizational changes that are triggered due to changing circumstances or regulatory pressures.
As fiduciaries boards are legally responsible to represent shareholders/owners as well as investors. They determine policies for dividends and payouts, as well as hire/fire and reward management. They also set corporate rules. They also maintain strong communications with management and serve as their representative to the company. The chair he has a good point of the Board, who is often elected by the board members, is the leader of the entire board. They are usually non-executive directors (NEDs) who serve as the intermediary between the chief executive officer and the board.
The primary function of the board is to serve as a steward to the organization. Some boards however, stray from the line and attempt to run the organization themselves instead of ensuring that their actions are in line with the company’s mission. Boards need to balance their oversight role with their responsibility to ensure organizational success. This can be accomplished most efficiently through committees. For example audit, compensation and nominations committees are now popular methods of looking at complex issues. The committees are able to present their findings to the entire board.