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Top ManagementCorporate Management
Prepared By
Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
Top Management
• Top management
encompasses mainly two
layers namely, directors
and the chief executives.
Board of directors
• Directors are elected shareholders representing the equity shareholders to manage the affairs of the business in a democratic manner.
• A well balanced board is one which has thorough representation of all interest of financial stake, experience and expertise.
Board of directors
• In the case of reliance industries limited, it has in all 15 members consisting of board of which 12 are whole time and 3 are part time. The whole time directors are made up of one chairman and managing director, 1 vice chairman and director and 10 executive directors. The company has no nominated directors.
Role of board of directors
• It acts as the Trustee of Shareholders – The director’s act as representatives of shareholders and work with utmost faith and degree of honesty in protecting long term aims of wealth maximization of company.
Role of board of directors
• Determining the fundamental objectives and policies – The board of directors play vital role in long range planning and set the overall goal of the company within the framework.
Role of board of directors
• Determining the organization structure and selecting the top executives – It is the prerogative of the board to select the CEO and other top level managers.
Role of board of directors
• Approving financial
matters – These financial
matters relate to two
things namely, approval
of budgets and
distribution of the
corporate earnings.
Role of board of directors
• Maintaining adequate
checks and controls – In
the final analysis, the
board of directors is held
responsible for the result
of the company.
Role of board of directors
• Statutory functions –
Directors are to perform
certain legal functions
which are mandatory on
their part.
Chief Executive
• The role of CEO is of paramount importance so far as strategic management is concerned – both in family and professionally managed companies.
• A company may have either a chief executive or multiple chief executives – a team consisting of more than one person.
• CEO is the person who is to shoulder the responsibility in respect to strategic management.
Role of Chief Executive
• Formulating long term plans – CEO is the brain behind long term planning and decision making.
• Guiding and directing – CEO provides his valuable guidance and direction to different functionaries in the organization.
Role of Chief Executive
• Integrating – Integration is an essential part of coordination as it deals with integration of interests, timing the operations and balancing of efforts.
• Reviewing and controlling – Review becomes very important task of CEO as he is seeing whether everything is going according to his plans.
Role of Chief Executive
• Public relations – CEO is responsible for maintaining good rapport with the publics of the society in which he works.
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