MARY GRACE B.

LAURON BSMA-4 MAC454

Assignment 2:

2-3. Explain the role of executive leadership in building the strategic vision in corporations.
Executive leadership is directing of activities toward the accomplishment of the strategic
vision of the company. It is important because it sets the tone for the entire corporation. CEO’s
role of executive leadership can help inline or direct the people in the workforce to their vision
and only the top management can do that.
2-4. Is there a close relationship between the composition of a board of directors and the
organizational performance?
Between the composition of a board of directors and the organizational performance
there is a relationship but not a close one. Organizational performance involves analyzing a
company’s performance against its objectives and goals. Board of directors are the one
required to direct the affairs of the corporation and not to manage them. BOD has to act with
due care as stated by the law. They oversee the condition of the company. They approve
decisions that would affect the performance of the company.
2-5. Why is the combined Chair/CEO (or Managing Director) positions being increasingly
criticized by most management scholars?
The chairman and the CEO (or the managing director) positions carries distinct
responsibilities. The combined chair/CEO positions are being increasingly criticized by most
management scholars because of the potential conflict of interests. CEO’s role is focused on the
strategy, planning, external relations and responsibility to the board. Whilst, the Chairman’s
role is to make sure that the BOD and the committees perform their functions as per stated in
the charter. It will be difficult for the BOD to oversee the top management if the Chairman is
part of the top management also. That’s why these two roles are separated and must be
performed by another person.
2-6. What is the role of codetermination? In your opinion, is the incorporation of lower-level
employees on the board appropriate?
‘Co-‘ use to refer to a joint to something or being together with something or with a
group. Codetermination is the inclusion of the corporation’s employees on its board. They
represent themselves not as workers in the corporation but as owners. In my opinion, the
incorporation of lower-level employees on the board is appropriate. Given that there would be
limitations as to where they’ll exercise their rights. For instance, BOD workers have to exercise
their rights concerning the employees of the corporation. They could concern themselves
regarding employee status and rights. They will always be limited on matters concerning only
on the employees while the other BOD’s that are not workers of the organization would be for
the decision-making, implementations and other functions excluding employees’ matters. This
would be very helpful and informative to the board since they would act as the voice for the
employees.
2-7. How should a board of directors be involved in the executive leadership of an
organization?
Board of directors are involved in the executive leadership of an organization since the
BOD are the one who selects and hires the executive director to run the organization well and
within the purpose and mission of the entity. It is important to appoint the best leader to direct
or to align the organization toward the betterment of the company. CEO’s with clear strategic
vision and strong passion for the company and is able to communicate with other smoothly
tend to be successful.