Opportunities identified to improve Board meeting effectiveness will be directly linked to opportunities for improving governance effectiveness.
The Main Benefits of Board Meeting Evaluation
Board meeting evaluation forms a reasonable strategy for the company, increasing its economic efficiency, competitive advantages, and providing an opportunity to competently and purposefully change the tools used in accordance with the changing conditions of the external world. Therefore, it is of undoubted importance to develop and implement a strategy that meets all the requirements of the internal characteristics of the company and external conditions in a stable period and at the same time has sufficient flexibility to quickly respond to changes.
The board meeting evaluation of a work plan makes it possible to correctly distribute the tasks facing the Board during the year, and makes it possible for each member of the Board of Directors to systematically prepare for meetings. The chairman should distribute among the members of the Council the responsibilities for the preparation of individual issues of the meetings, which allows to fully consider all the discussed topics. This practice will improve the quality of the meetings held, and the validity of the decisions made. The score for this criterion should be based on the presence or absence of relevant practice.
The benefits of a board meeting are based on the impact on the production and labor activity of people, which is carried out in two ways:
- by directly influencing people through stimulation and motivation of their social and labor activity;
- by indirectly influencing people through the creation of organizational conditions and optimization of the goals of their social and labor activity.
Hence, the basis of board meeting evaluation is laid:
- a system of forms of motivation and methods of stimulation (administrative, economic, moral, and psychological) of social and labor activity of people;
- a system of forms of organization and methods of regulating the interaction of people in the process of their joint social and labor activities.
The Main Interest in Board Meeting Evaluation
Interest in a board meeting evaluation came relatively recently. Therefore, the methodological and theoretical basis of this issue has not yet been sufficiently worked out. Although, practically at many domestic enterprises, especially large ones, work is already underway to create and develop a corporate culture. To identify specific mechanisms of influence on improving the manageability and efficiency of economic activity, it is necessary to study the corporate culture of any organization.
Best board governance practice involves discussing specific issues at meetings of independent and non-executive directors. This makes it possible to increase the independence of the Board of Directors and reduces the possibility of management’s influence on the decisions made by the directors. Assessing the quality of the work of the board of directors makes it possible to determine the degree of participation of its members in the implementation of the company’s strategy and its main goals, and to enhance the role of the board of directors in achieving the goal of successful development of the company.
The domestic science of board meeting evaluation is at the junction of a number of branches of scientific knowledge, and its development should be considered in close relationship with these areas, first of all, this concerns a fairly new branch of sociological knowledge – sociology of management. If you conduct a study of the sociology of management as a branch of sociology, then, as a rule, scientists consider “relationships, connections between people, their consciousness and behavior in the process of joint tasks execution”.