Managing Internal Stakeholders (DOCEV) - correct answer ✔✔• Directors comprise legal entity
responsible for the corporation's affairs
• Officers are directors with specific responsibilities
• Committees are the work horses of the Board of Directors
o Standing, Operating and Ad-Hoc Committees
• Employees, contractors and consultants are hired to do day-to-day work
• Volunteers help with everything
Primary Functional Responsibilities of Board of Directors (SADEA) - correct answer ✔✔1. Appoint,
support and evaluate the CEO
2. Establish mission, vision, values
, 3. Approve programmatic initiatives and monitor their execution
4. Safeguard financial stability and management
5. Design metrics to measure organizational performance
Board Selection Options (ESH) (D: PBD) - correct answer ✔✔1. Elected - keeps organization, board and
CEO responsive to stakeholders needs (Accountability)
a. Disadvantage: politics may create conflicting skill base; turnover is possible with elections
2. Self-Perpetuating - facilitates stability of organizational culture and goals, enables balance (Stability)
a. Disadvantage: Board focused on status quo; connection to community weakened
3. Hybrid - provides possibility of balance between stability and accountability
a. Disadvantage: Divide between Elected and Self-Perpetuating boards may occur
Common Issues with Board of Directors - correct answer ✔✔• Conflict of interest
• Lack of trust
• Personal self-interest
• Board too big
• Board too meddlesome
• Unclear roles
• Wrong people on the board in terms of skills, knowledge, interests and commitment
• Lack of common focus or direction
Small Boards: Upside (SIECC) - correct answer ✔✔• Sense of unity
• Easier to engage all members
• Communication and interaction easier
• Increase in flexibility in scheduling, cost efficiency, and easier for teleconference
• Consistent with research
Small Boards: Downside (VDIFI) - correct answer ✔✔• Fewer perspectives
• Increase in possibility of group think
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