Term
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Definition
| mechanism established to allow diff. parties to contribute capital, expertise, and labor for their mutual benefit |
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Term
| Board of Directors responsibilities |
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Definition
-set corp. vision, strat, goal, mission
-Hire/fire top mgmt
-control/monitor/supervise top mgmt
-review/approve use of resources
-care for shareholder interests |
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Term
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Definition
| obligation of Board members to monitor and evaluate top mgmt |
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Term
| Role of BoD in strategic mgmt (3) |
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Definition
-Monitor
-Evaluate and Influence
-Initiate and determine |
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Term
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Definition
| shows possible degrees of involvement (low to high)
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Term
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Definition
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Term
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Definition
| Officers make decisions, votes as officers recommend actions |
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Term
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Definition
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Term
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Definition
| involved to limited degree in perf/review of decisions |
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Term
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Definition
| Approves questions, makes final decisions on mission/strat/policies/objectives. Perform fiscal/mgmt audits |
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Term
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Definition
| Leading role in establishing mission/obj/strat/policies |
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Term
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Definition
| officers/execs employed by corporation |
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Term
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Definition
| Execs of other firms, not employees of corp. |
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Term
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Definition
| Problems arise in corporations because agents (top mgmt) are not willing to bear responsibility for decisions unless they own substantial amnt of stock. |
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Term
| Proponents of Agency Theory |
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Definition
-Inside Directors select less risky with quick payoffs
-larger proportion of outside favor growth through expansion |
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Term
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Definition
| Because of Inside director long tenure with corp., they tend to identify with it more. |
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Term
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Definition
| Handle legal or insurance work or important suppliers. |
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Term
| Retired executive directore |
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Definition
| used to work for the company |
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Term
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Definition
| Descendants of founder (significant portion of stock) |
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Term
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Definition
Inclusion of corporation's workers on board. (union agmt's or ESOPs)
-pioneered by Germany (supervisory board and mgmt board) |
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Term
| Direct interlocking directorate |
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Definition
| two firms share a director or Exec of one sits on board of other |
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Term
| Indirect Interlocking Directorate |
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Definition
| two corps have directors who also serve on the board of a third firm (bank) |
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Term
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Definition
| determined by corporation's charter and its bylaws. avg=10 |
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Term
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Definition
| Consulted by Chair/CEO regarding board affairs and coordinates the annual evaluation of the CEO |
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Term
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Definition
-requires directors serving on audit committee be independent.
-formal procedures for whistle-blowers.
-CEO and CFO must certify financial info.
-disclose if there is a code of ethics for CEO/CFO |
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Term
| Top MGMT responsibilities |
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Definition
getting things accomplished through and with others in order to meet objectives.
1)provide exec leadership and a strat vision
2)Manage strategic planning process |
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Term
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Definition
| provide change and movement in an organization by providing a vision for that change |
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Term
| Key Chars of Trans. Leaders (3) |
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Definition
1) CEO articule strategic vision
2) CEO present a role for others to identify with (role model)
3) Communicates high standards, shows confidence in followers abilities |
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Term
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Definition
| confidence blinds them to info that is contrary to decided course of action |
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Term
| Bottom-Up/Top-down strat. planning |
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Definition
BU-appropriate in multidivisional corps in stable environments
TD-Turbulent environments |
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