The management board is responsible for a range of duties, including establishing strategy, managing finances creating relationships with the community, and establishing ethical standards. Boards choose a CEO and monitor their progress; they set the direction http://www.herbboardroom.com/the-difference-between-governance-and-management of an organization by developing goals, vision and strategic goals; develop community relations and establish management practices to ensure quality and compliance, as well as governance and address the need for organizational changes because of changing circumstances or regulatory pressures.
Boards are legally accountable as fiduciaries to represent owners/shareholders and investors. They make the corporate rules, set policies for dividends, payouts, and compensation, and make decisions on hiring or firing upper management. They also maintain a high level of communication with management and represent them to the company. The chair of the Board, who is usually elected by the board members is the chief of the entire board. Most of the time, they are non-executive directors (NED) and serve as the liaison to the chief executive officer.
The main role of the board is to serve as a steward of the organization. However, some boards cross the line into management, and attempt to handle things on their own instead of ensuring that activities are in line with the organization’s commitment to its mission. Boards must keep in mind their oversight role and their responsibility to ensure organizational success. This can be accomplished most effectively by using committees. For example audit, compensation and nominations committees have become well-known methods of looking at complex issues. The committees are able to present their findings to the entire board.