If it’s setting the strategies, overseeing management or finances, fostering relationships with communities, or establishing ethical standards and values, the responsibilities of the management board are many and varied. Boards choose a CEO and monitor their progress. they determine the direction of an organization through the development of a vision, mission, strategic thrusts and goals; develop community relations and establish management discover this info here practices to ensure quality and compliance, governance and quality; and address organizational changes that occur due to changes in circumstances or regulatory pressures.
Boards are legally responsible as fiduciaries to protect shareholders and investors. They make the corporate rules, set policies for dividends, payouts, and compensation, and make decisions on hiring or firing upper management. They also maintain strong communications with management and serve as their representative to the company. The chair of the board, usually elected from the membership of the board, is a leader of the entire board. They are often non-executive directors (NEDs) who serve as the link between the chief executive officer and the board.
The biggest function of the board is to function as a steward to the organization. Some boards however, cross the line and try to manage the organization themselves instead of ensuring that the actions are consistent with the company’s mission. Boards need to take care to balance their oversight duties with their responsibility to ensure organizational success. This can be done most efficiently by utilizing committees. For example audit, compensation, and nominations committees are now popular methods of examining complex problems. These committees provide the full board on their findings.