Board of directors vs management – Organization | Management Notes

Board of directors vs management
| Organization |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 who are hired by the Board of Directors that operate at the higher levels of an organization and have day-to-day responsibility for managing other individuals and maintaining responsibility for key business functions.

Board of directors vs management

 

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 who are hired by the Board of Directors that operate at the higher levels of an organization 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 is hired by the Board of Directors(BOD) of the respective companies.
In the 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 the corporate hierarchy.Management is considered as the second-tier of the corporate hierarchy.
Board of Directors (BOD) are accountable to the shareholders.Management is 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 an 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)

Similarly, You may also like:

Difference between Collectivism and Individualism

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.