DIRECTOR-TAPASYA COMMUNICATION

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Responsibilities of the Board of Directors.

Sets corporate strategy, overall direction, mission, or vision

Hires and fires the CEO and top management

Controls, monitors, or supervises top management

Reviews and approves the use of resources

Cares for shareholders’ interests

Assures that the corporation is managed in accordance with state laws, security regulations and conflict of interest situations


Role of the Board in Strategic Management

Monitor developments inside and outside the corporation

Evaluate and Influence management proposals, decisions and actions

Initiate and Determine the corporation’s mission and strategies


. Members of a Board of Directors


Inside Directors are officers or executives employed by the board’s corporation. Also called management directors

Outside Directors are executives of other firms but are not employees of the board’s corporation. Also called non-management directors

Theory of BOD

Agency theory : This theory support that majority of board of directors should be independent.
It states that problems arise in corporations because top management is not willing to accept responsibility for their decisions unless they own a substantial amount of stock in the corporation

Stewardship theory : This theory support that majority of board of directors should be insider.
as the result of long tenure with the corporation, insiders (top
management) tend to identify with the corporation and its success. Act in the best interest of the corporation more than self-interest

Managing the Strategic Planning Process
Strategic planning staff- supports both top management and the business units in the strategic planning process

Major responsibilities include:

Identifying and analyzing company-wide strategic issues, and suggesting corporate strategic alternatives to top management
Work as facilitators with business units to guide them through the strategic planning process