GOVERNANCE AND MANAGING

OPERATIONS

Governance
The board of directors takes on the role of governance. Governance is the practice of
the board of directors coming together to make decisions about the direction of the
company. Duties such as oversight, strategic planning, decision-making and financial
planning fall under governance activities. The board is responsible for creating the
company’s bylaws, which are a set of core policies that outline the company’s mission,
values, vision and structure. On an as-needed basis, the board creates and approves
major policies.

In an ideal corporate environment, all managers and workers are aware of their tasks
and obligations and carry them out appropriately. They're trustworthy and industrious
individuals who value ethics and honesty. Regrettably, this is not always the case. The
board of directors is supposed to act as a check and balance, overseeing workers and
all parts of the business. Boards should avoid getting engaged in day-to-day operations.
Boards must work closely with management by setting guidelines, even if they are not
actively involved. Financial reports and the yearly budget should be shared with the
board by management. Boards of directors examine financial data and make a variety
of decisions, including large acquisitions, dispositions, and capital expenditures.

The board selects, hires, and oversees the appointment of new top executives, as well
as reviewing their performance and determining their compensation and benefits.
Managers are given the freedom to design their operational plans, which are then
reviewed by the boards to ensure that they are in line with the overall strategy. Boards
of directors must act when it is essential for the corporation's welfare, especially in
unforeseen crisis situations.

Management
Depending on the size and type of organization, management structures can take on an
endless variety of forms. Management choices support and implement the board's aims
and values in all circumstances. Managers are in charge of making routine operational
decisions as well as all of the administrative tasks that keep the business running
smoothly. Almost every department in the business is connected to administration.

Interviewing, hiring, training, and retaining new workers are all handled by middle and
lower management. Delegating duties based on the company's demands and finding
people they can trust to get the job done are all part of the employee recruiting process.
Retaining excellent personnel necessitates a thorough examination of data and
employee performance in order to promote high work standards.

Executives serve as a link between the board of directors and lower-level management.
One of their responsibilities is to communicate the board's requirements to lower-level
workers. Managers can do this by breaking down the board's objectives into short- and
long-term operational goals and following through on them. Managers are in charge of
implementing business policies and keeping employees accountable for their conduct,
while the board of directors is in charge of creating them.

Managers require a different set of abilities than board directors. First and foremost,
they must possess strong motivational abilities in order to encourage employees and
foster a positive work atmosphere. Similarly, excellent teaching abilities are
advantageous for managers. Most employees will require some sort of training, as well
as ongoing motivation to enhance their performance. Managers are in a position where
they must pacify or please individuals on a variety of levels and from various parts of the
business. As a result, management positions are frequently high-pressure/high-stakes
professions that need maintaining a level head and making smart decisions under
duress. Managers with strong collaboration abilities may frequently relieve some of the
strain by employing problem-solving techniques to overcome obstacles.

The effects of economic problems and technology developments filter down to

operations. Effective managers are adept at quickly modifying management structures
in response to changing circumstances. Adept managers are also very good at
conveying changes to the rest of the company during times of rapid change. Strong
managers take the initiative to initiate initiatives and monitor them from start to finish.
They're also ready and prepared to step in if something goes wrong.