The board of directors operates as the representatives of the firm’s stockholders. Elected by the stockholders, the board has these major responsibilities:
- To elect the company’s top officers, the foremost of whom is the CEO.
- To establish the compensation levels of the top officers, including their salaries and bonuses.
- To determine the amount and timing of the dividends paid to stockholders.
- To sets broad company policy on such matters as labor-management relations, product or service lines of business, and employee benefit package.
- To set company objectives and to authorize managers to implement the long-term strategies that the top officers and the board have found agreeable.
- To mandate company compliance with legal and ethical dictates.
More from this Section
- Network organization
Another structural option for managers who want to minimize or eliminate organizational boundaries is a network organization, in
- Ethnocentric attitude
An ethnocentric attitude is the parochialistic belief that the best work approaches and practices are those of the home country (the country
- Geocentric attitude
Geocentric attitude, a world-oriented view that focuses on using the best approaches and people from around the globe. Managers with
- Primary activities
The activities in a firm of those involved in the physical creation of the product, marketing and transfer to the buyer, and after sale support.
A resource advantage relative to competitors and needs of the markets a firm serves or expects to serve.
- Global company
Global company, is an international company that centralizes management and other decisions in the home country.
- Decisional roles
The decisional roles entail making decisions or choices. The four decisional roles are entrepreneur, disturbance handler, resource