ASSIGNMENT board of director of a company explain

ASSIGNMENT COVER REGION HARARE/CHITUNGWIZA PROGRAMME BCOM HHIR INTAKE 26 FULL NAME OF STUDENT JEKESAI C. NXUMALO PIN P1449427C MAILING ADDRESS 13 Little Avenue, Queensdale, Harare CONTACT TELEPHONE/CELL 0772 280 647 ID. NO. 63-1195086P75 COURSE NAME STRATEGIC MANAGEMENT CODE BHIR304 ASSIGNMENT NO. 2 DUE DATE 04/2018 ASSIGNMENT TITLE You have been appointed as a board of director of a company explain what are your functions in strategic management as a board of director. (50marks) MARKERS COMMENTS ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ OVERALL MARK _____________ ______MARKERS NAME _____________________ MARKERS SIGNATURE _____________________________ DATE ______________ You have been appointed as a board of director of a company explain what are your functions in strategic management as a board of director. (50marks) When appointed as a board of director of a company, understanding the roles and responsibilities should be the first task. Wikipedia defines Strategic Management as the formulation and implementation of the major goals and initiatives taken by a HYPERLINK https// o Company companys top management on behalf of owners, based on consideration of HYPERLINK https// o Factors of production resources and an assessment of the internal and external environments in which the organization competes. Strategic management provides overall direction to the enterprise and involves specifying the organizations objectives, developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision making in the context of complex environments and competitive dynamics. Strategic management is not static in nature the models often include a feedback loop to monitor execution and inform the next round of planning. Discussed below are some of the functions as a board of director in strategic management. Setting strategy and structure. This involves reviewing and evaluating present and future opportunities, threats and risks in the external environment and current and future strengths, weaknesses and risks relating to the company. Determining strategic options, selecting those to be pursued, and deciding the means to implement and support them. Determining the business strategies and plans that underpin the corporate strategy and ensuring that the companys organisational structure and capability are appropriate for implementing the chosen strategies. According to Whitehead and Whitehall (2000), the board of director recruits and appoints appropriately qualified executives to fill the posts of the executive structure in the organisation. Value-added business boards need to aggressively search for the best possible candidate for this position. Actively searching within your industry can lead to the identification of very capable people. Delegating to management As a board of director, another function is to delegate authority to management, monitor and evaluate the implementation of policies, strategies and business plans. Determining the monitoring criteria to be used by the board, e HYPERLINK https// nsuring that internal controls are effective and communicating with senior management. This also involves maintaining the morale of the organisation by effective leadership at all times. Exercise accountability to shareholders and be responsible to relevant stakeholders This involves ensuring that communications both to and from shareholders and relevant stakeholders are effective. The board of director understands and takes into account the interests of shareholders and relevant stakeholders. The director also monitors relations with shareholders and relevant stakeholders by gathering and evaluation of appropriate information as well as promoting the goodwill and support of shareholders and relevant stakeholders. Running the day to day activities of the organisation As a board of director, you are appointed to act on behalf of the shareholders to run the day to day affairs of the business. The board are directly accountable to the shareholders and each year the company will hold an annual general meeting (AGM) at which the directors must provide a report to shareholders on the performance of the company, what its future plans and strategies are and also submit themselves for re-election to the board. Legal responsibilities Directors look after the affairs of the company, and are in a position of trust. They might abuse their position in order to profit at the expense of their company, and, therefore, at the expense of the shareholders of the company. Consequently, the law imposes a number of duties, burdens and responsibilities upon directors, to prevent abuse. Much of company law can be seen as a balance between allowing directors to manage the companys business so as to make a profit, and preventing them from abusing this freedom. A Board member is trusted with fiduciary responsibilities which encompass three legal duties care, loyalty and obedience. They must act in good faith and for the interest of the shareholders and the organization. They must also keep the good of the organization in mind and not base the decision on personal interests, and finally, they must obey the policies stated in the governing documents of the corporation. Keeping of proper books of accounts As a board of director, another function is to ensure that proper books of account are kept. In some circumstances, a director can be required to help pay the debts of his company, even though it is a separate legal person. For example, directors of a company who try to trade out of difficulty and fail may be found guilty of wrongful trading and can be made personally liable. Directors are particularly vulnerable if they have acted in a way which benefits them. Establishing a policy based governance system The board has the responsibility of developing a governance system for the business. The articles of governance provide a framework but the board develops a series of policies. This refers to the board as a group and focuses on defining the rules of the group and how it will function. In a sense, its no different than a club. The rules that the board establishes for the company should be policy based. In other words, the board develops policies to guide it own actions and the actions of the manager. The policies should be broad and not rigidly defined as to allow the board and manager leeway in achieving the goals of the business. In conclusion, individual directors have only those powers which have been given to them by the board. Such authority need not be specific or in writing and may be inferred from past practice. However, the board as a whole remains responsible for actions carried out by its authority and it should therefore ensure that executive authority is only granted to appropriate persons and that adequate reporting systems enable it to maintain overall control. It is important that board meetings are held periodically so that directors can discharge their responsibility to control the companys overall situation, strategy and policy, and to monitor the exercise of any delegated authority, and so that individual directors can report on their particular areas of responsibility. REFERENCES Zimbabwe Open University Strategic Management Module Whitehead and Whitehall (2000) JC NXUMALO 6kdHFzNY45Mo7JT -G vwCEIT.vizTrJBDl 5fNumydv8N
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