Question
The board of directors are elected individuals responsible for acting in the owner's best interest by monitoring and controlling the company's top-level managers (Hitt et
The board of directors are elected individuals responsible for acting in the owner's best interest by monitoring and controlling the company's top-level managers (Hitt et al., 2014). Though the board of directors does not incorporate into the company's strategic directions, some argue that the board of directors should be more involved in strategic planning. An increase in board involvement with strategic decision-making creates an effective partnership between top-level managers and the board of directors. Unfortunately, evidence shows that the board of directors are not very effective in monitoring or controlling top-level managers' decisions and actions. However, other research suggests that bringing on an outside director significantly increases performance as it brings in an outer perspective. I believe that increasing the board's involvement in strategic planning would boost strategic competitiveness as the board of directors actively monitor operations. Who best to lead the strategic direction and implement strategies than those monitoring day-to-day operations? What level of involvement should the board have while also juggling their other responsibilities?
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