BOD and Manager’s

Relationship
 Major Factors for a Sound Relationships
Between the Manager and the Board
 Understanding the organization’s objectives.
General ideas are not enough; understanding
must be definite and specific
 Understanding the duties and functions of
each
 Properly reward good management
 The board should concentrate on important
functions, such as long-range planning,
adoption of its policies and creation of
desirable controls over policies
 Major Factors for a Sound Relationships
Between the Manager and the Board
 The manager should recommend, and/or the board to
adopt clear cut policies to serve as guidelines within
which the manager can conduct the operations.
 Establishment of good policies by the board with due
consultation with the manager.
 The board should require basic periodic reports with
sufficient information to enable it to make
comparisons, observe trends and see that the
operations are being carried on satisfactorily.
 Employment of relatives of the manager or of a board
of directors should be avoided
 Board Responsibility Manager Responsibility
Report to the Reports to the board to
membership to which it which he/she is
is accountable accountable

Concerns itself with Make action decisions

“Ideal Decisions.” to carry out ideas.

Determines overall Decides on carrying out

objectives (the “what”) objectives (the “how”
and “when” of the
achievement of
objective).
 Board Responsibility Manager Responsibility
 Establishes Policies Carries out policies under
authority granted by the
board.
 Coordinates policies. Coordinates personnel to
execute policies.
 Approves goal Proposes goals in terms
of specific quantity and
time for achievement
 Decides about long-range Decides on intermediate
plans committing and short-term
commitment of resources
resources, facilities, of the organization and
finance and manpower control of these resources
 Board Responsibility Manager Responsibility
 Decidesabout job Decides about job
responsibility and responsibilities, training
performance of directors and performance of
employed personnel
 Setsup standards of
performance of directors