Question

What are some of the potential difficulties between governing bodies and administration? How can they be avoided?

Answer 1

Answer : In any organisation there should be governing bodies and administration (Management). For proper functioning and achiving organisational goals they work together. The governing bodies provide organisation with vision,mission and proper planning of goals where as administrative body manage the finance of an organisation properly.

Sometime there are potential diffculties between governing body and administration are :

• Governing body make interfare in administration for there personal interest . Sometime governing body want to maximise there profit on the basis of either increase salary of directors or provide more incentives or increase dividend in case of public company.
• Sometime the governing body take the authority of managing the finance and prepared accounting and financial reports.
• Board enjoyed superior power than administration and they take any power of administrative department.
• Board responsibility is to formulate policies and procedures but whenever they needed they implement the policies itself.

It should be avoided by management such as :

• Management should be quite active and knowlegeable so that there is no delay of decision as a result there is less chance of interfare of the board.
• Implement the policy in best and logical manner so that board has no chance to point out the managenet and take away the power.
• Management make proper and wise decision without harming governing bodies or employees.
• It should be avoided when administration provide proper role to the management.
• The managers should give proper instructions to the board if they continous interfare in the working of an administration . It is resulted in legal and ethical problem. It affected your position in the market place.