Top ManagementCorporate Management

Prepared By

Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.

Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Top Management

• Top management

encompasses mainly two

layers namely, directors

and the chief executives.

Board of directors

• Directors are elected shareholders representing the equity shareholders to manage the affairs of the business in a democratic manner.

• A well balanced board is one which has thorough representation of all interest of financial stake, experience and expertise.

Board of directors

• In the case of reliance industries limited, it has in all 15 members consisting of board of which 12 are whole time and 3 are part time. The whole time directors are made up of one chairman and managing director, 1 vice chairman and director and 10 executive directors. The company has no nominated directors.

Role of board of directors

• It acts as the Trustee of Shareholders – The director’s act as representatives of shareholders and work with utmost faith and degree of honesty in protecting long term aims of wealth maximization of company.

Role of board of directors

• Determining the fundamental objectives and policies – The board of directors play vital role in long range planning and set the overall goal of the company within the framework.

Role of board of directors

• Determining the organization structure and selecting the top executives – It is the prerogative of the board to select the CEO and other top level managers.

Role of board of directors

• Approving financial

matters – These financial

matters relate to two

things namely, approval

of budgets and

distribution of the

corporate earnings.

Role of board of directors

• Maintaining adequate

checks and controls – In

the final analysis, the

board of directors is held

responsible for the result

of the company.

Role of board of directors

• Statutory functions –

Directors are to perform

certain legal functions

which are mandatory on

their part.

Chief Executive

• The role of CEO is of paramount importance so far as strategic management is concerned – both in family and professionally managed companies.

• A company may have either a chief executive or multiple chief executives – a team consisting of more than one person.

• CEO is the person who is to shoulder the responsibility in respect to strategic management.

Role of Chief Executive

• Formulating long term plans – CEO is the brain behind long term planning and decision making.

• Guiding and directing – CEO provides his valuable guidance and direction to different functionaries in the organization.

Role of Chief Executive

• Integrating – Integration is an essential part of coordination as it deals with integration of interests, timing the operations and balancing of efforts.

• Reviewing and controlling – Review becomes very important task of CEO as he is seeing whether everything is going according to his plans.

Role of Chief Executive

• Public relations – CEO is responsible for maintaining good rapport with the publics of the society in which he works.