Question

Discuss some possible firm policies/organizational structure choices than can enhance the effectiveness of the board of directors.

Answer 1

Some firm policies to enhance the effectiveness of board of directors

Some firm policies to enhance the effectiveness of board of directors
1. Diversification of Board: to reduced common thinking process the board of directors should be chosen from, diverse background with respect to age, gender, qualification, past experience, etc. This will enhance the effectiveness of the board
2. Constructive feedback: Continuous feedback on board meeting, decision making and other functions of the board should be taken and also a feedback to the board of directors about their performance should be given regularly.
3. Fostering culture of trust among the board members. The board members can perform effectively when they develop trust which can be attained by getting to know and work together. Parties, get-together sessions, etc. can be planned as an icebreaker for board of directors.
4. Training and orientation: Regular training and updates about the current market scenario and other valuable information regarding the company should be provided to increase effectiveness of the board of directors.

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