Text 4. Board of directors and CEO

A company’s board of directors helps management to develop business plans, economic policy objectives, and business strategy. A board of directors often selects the chief executive of the business, supports him, reviews his performance, and may dismiss him.

Through regular meetings, the board helps ensure effective organizational planning and sees that company resources are managed effectively. The board of directors also sees that the company meets regulatory requirements that apply to that business. The board of directors also must assess overall performance of the corporation.

Directors monitor a company’s financial performance and the success of its products, services and strategy. Directors are expected to follow developments that can affect business. They must set aside any potential conflict between their personal or individual business interests to support the well-being of the business which they serve.

The most effective board of directors will be a group of professionals who bring a breadth of skills, experience and diversity to a company. As a company grows and changes, the governing board also will change to meet changing needs and circumstances.

Major duties of Board of Directors are:

1. Select and appoint a chief executive; to review and evaluate his/her performance; to offer administrative guidance and determine whether to retain or dismiss him

2. Govern the organization by broad policies and objectives.

Acquire sufficient resources for the organization’s operation

4. Account to the public for the products and services of the organization and expenditures of its funds.

Major responsibilities of Board of Directors:

1. Determine the Organization’s Mission and Goal.

2. Select the Executive

3. Support the Executive and review his/her performance

4. Ensure effective organizational planning

5. Ensure adequate resources

6. Manage resources effectively

7. Determine  and monitor the organization’s products and services.

8. Enhance the organization’s public image

9. Assess organization’s performance.

 

Typical Major functions of Chief Executive Officer of a Corporation 

There is no standardized list of the major functions and responsibilities carried out by position of chief executive officer. The following list is one perspective and includes the major functions typically addressed by job description of chief executive officer:

1. Board administration and support. Chief executive officer (CEO) supports operations and administration of Board by advising and informing Board members, interfacing between Board and staff, and supporting Board’s evaluation of chief executive.

2. Program, Product and Service Delivery.  CEO oversees design, marketing,promotion,delivery and quality of programs, products and services.

3. Financial, Tax, Risk and Facilities Management. CEO recommends yearly budget for Board approval and prudently manages organization’s resource within those budget guidelines according to current laws and regulations.

4. Human Resource Management. CEO effectively manages the human resources of the organization according to authorizes personnel policies and procedures that fully conform to current laws and regulations.

5. Community and Public Relations. CEO assures the organization and its mission, programs, product and services are consistently presented in strong, positive image to relevant stakeholders.

6. Fundraising (non-profit specific). CEO oversees fundraising planning and implementation, including identifying resource requirements, researching funding sources, establishing strategies to approach funders, submitting proposals and administrating fundraising records and documentation.

Answer the questions to the texts

1. What is an organization?

2. In what way are people and positions they hold connected?

3. What components does the model of organization include?

4. What are three principal forms of business organization?

5. What is a sole proprietorship?

6. What are advantages and disadvantages of sole proprietorship?

7. What is a partnership?

8. What are the limited partnership and general partnership?

9. What are the advantages and disadvantages of partnership?

10. What is a joint venture?

11. What is a corporation?

12. Who are the owners of a corporation?

13. What is necessary to form a corporation?

14. Who oversees the major policies and decisions?

15. What are advantages and disadvantages of corporation?

16. How many styles of organization do you know and what are they?

17. What is most promising long-term organizational style?

18. Describe the kinds of organization structure.

19. What can you tell about Responsibility, Authority and Duty?

20. Do managers consider any organization as a management object?

21 Does an organization have a life cycle?

22. What are the responsibilities of a board of directors in a corporation?

23. What are major duties of a board of directors?

24 What can we call an effective board of directors?

25. What are typical functions of CEO?

Vocabulary to Unit 1

1. bring (together)    сводить вместе

2. crown n (of the tree) крона дерева                  

3. embodiment n воплощение, олицетворение

4. trunk n  ствол дерева                           

5. core n сердцевина,

6. root(s) n, pl корни

7. core competence (y) ключевая компетенция                                                                  

8. hierarchy n иерархия                                                                                                                    

9   be accountable (to smb.)  подотчетный кому-либо

10. affiliate n. 1)филиал, отделение; 2) компаньон

             v. 1) принимать в члены, объединять, присоединять к.. (with)                                    

11. span of control  предельный объем ответственности

12. maturity зрелость, совершенность, законченность                                                              

13. sole proprietorship  единоличная собственность

14. departmentalization   n разделение на отделы

15. matrix   матричная организационная структура

16. advantages n, pl преимущества

17. disadvantages  n, pl   недостатки, невыгодное положение

18. in orderly manner  в должном порядке, надлежащим образом

19. assets n, pl активы, средства, ресурсы, фонды, капитал

20. liabilities n, pl обязательства, ответственность за что-либо

21. breach the contract  нарушить контракт

22. judgment n  мнение, оценка, суждение

23. inventory n инвентаризация, опись всего имущества

24. set forth v  излагать, формулировать, объяснять

25. dissolve v  прекращать деятельность, распускать

26. withdrawal n отзыв, выход, уход, изъятие

27. assume v  допускать, предполагать, принимать на себя

28. be chartered здесь: даровать привилегии; давать разрешение на

29. be sued преследоваться в судебном порядке

30. oversee v наблюдать, надзирать, следить за…

31. synergy n  успешные совместные усилия, синергизм

32.  raise funds  занимать деньги, находить средства

33. comply (with) v подчиняться требованиям, делать уступки

34. obey orders   повиноваться приказаниям

35. routine n обычный порядок, рутина, однообразная работа

36. seize the power  захватить власть

37. contingency organization  организация, основанная на ситуационном подходе.

38. just-in-time точно в срок, точно по графику.

39.breadth n широта, широкий размах

40.administrate v  управлять, контролировать