Question

Top executives and members of a corporation's board of directors have different roles and responsibilities. Traditionally, executives have been responsible for determining the firm's strategic direction and implementing strategies to achieve it, whereas the board of directors has been responsible for monitoring and controlling managerial decisions and actions. Some argue that boards should become more involved with the formulation of a firm's strategies. How would the board's increased involvement in the selection of strategies affect a firm's strategic competitiveness? What evidence you offer to support their position?

Answer 1

Decision-making is the focus of the administrative process, as it is a process intertwined in all the functions and activities of management

According to:
The board 's concept of increased involvement in strategie selection:

Extending the role of subordinates in the decision-making process, taking into account individual and group suggestions, recommendations and opinions expressed by subordinates, allowing for more effective decisions and ensuring easy implementation

The importance of increased involvement of the Board in strategies selection

The development witnessed by modern management, technological development and the growth of modern collective values led to the complexity of the director's role and the need to apply the principle of participation in general and, in particular, to take decisions for the following reasons:

1- The taking of serious strategic decisions relating to development , development and reform requires the involvement of workers in the organization, as well as the participation of all those who are connected with those decisions and who touch them from outside the organization, because these decisions require conscious thinking and convincing others of their use.

2- By its very nature, the decision-making process is the product of a joint effort of opinions , ideas and contacts, relying on multiple people.

3- Participation in decision-making allows managers to make more effective decisions through joint co-operative work, exchange views with others and find out all suggestions and suggestions.

Advantages of increased involvement of the Board in strategic selection:

It helps improve the quality of the decision, and makes the decision made more stable and acceptable to the workers, and they work with great enthusiasm and sincere desire to implement it.

-- Participation also leads to mutual trust between, on the one hand, the director and the members of the organisation, and, on the other, between the organization and the audience concerned.

-- The increased involvement of the board has an impact on the development of administrative leaders at the lowest level of organization and increases their sense of responsibility and understanding of the organization's objectives, and makes them more willing to accept remedial problems and implement the decisions they have taken.

The increased involvement of the board also helps raise the organisation's members' morale and satisfy the need for respect and self-affirmation.

There are certain precautions when board involvement is increased:

Involve workers in subjects which fall within the scope of their work and which have the capabilities and skills to enable them to contribute to it.

Create a good and appropriate climate of frankness and understanding and provide the data and information necessary to enable individuals to study and analyze it, and to identify alternatives based on it.

Giving the appropriate opportunity for the participation process, such as taking the views expressed by individuals if appropriate and of practical benefit, and applying them, will result in positive results that will be reflected in the effectiveness and rationalization of the decision taken through participation.

Collective style in the board's increased involvement in strategie selection:

The group approach is one of the best creative decision making methods , particularly if the group members are selected correctly.

And among the most important reasons which invite the establishments of today to adopt a collective decision-making method:

Information-Implementation Engagement-creativity-development.

1- The principle of participation should be emphasised.
2- Getting better choices.
3- To arrive at more alternatives.
4- Reception.
5 Elevate morale.