Difference between Board of Directors(BOD) and Management

Difference between Board of Directors(BOD) and Management
BBA | BBA-BI | BBM | BHM
Management Notes

Board of Directors(BOD) is an organized group of people which are elected normally by the stockholders of the firm generally at an Annual general meeting or (AGM) with the collective authority to control and foster an institution ,and to govern the firm and look after the subscribers’ interests.

Management is the group of individuals which are hired by the Board of Directors that operate at the higher levels of an organisation and have day-to-day responsibility for managing other individuals and maintaining responsibility for key business functions.

Board of Directors (BOD)	Management
Board of Directors(BOD) is an organized group of people which are elected normally by the stockholders of the firm generally at an Annual general meeting or (AGM) with the collective authority to control and foster an institution ,and to govern the firm and look after the subscribers’ interests.	Management is the group of individuals which are hired by the Board of Directors that operate at the higher levels of an organisation and have day-to-day responsibility for managing other individuals and maintaining responsibility for key business functions.
Board of Directors(BOD) are hired by the stockholders of the respective companies.	Management are hired by the Board of Directors(BOD) of the respective companies.
In case of decision making (BOD)s are required to make decisions that will affect the future of the company.	In case of decision making Management must implement the decision made by the (BOD)s.
Board of Directors(BOD) are considered as the first-tier of corporate hierarchy.	Management are considered as the second-tier of corporate hierarchy.
Board of Directors (BOD) are accountable to the shareholders.	Management are accountable to the Board of Directors(BOD).
Board of Directors (BOD)s have a key role in the determination of the values and ethical position of the company.	Management must enact the ethos, taking their direction from the board.
Board of Directors (BOD)s may be held responsible for the company’s actions.	There is no such kind of legal responsibility held for the management.
Duties of Board of Directors (BOD)s: Choosing the CEO Approving major policies Making major decisions Overseeing performance Serving as external advocate	Duties of Management : Making operational decisions Making operational policies Keeping the board educated and informed Bringing well-documented recommendations and information to the board
Board of Directors (BOD)s consists of: Chairman Inside Directors Outside Directors	Management consists of : Chief Executive Officer (CEO) Chief Operations Officer (COO) Chief Financial Officer (CFO) Chief Information Officer (CIO)