Chapter 10 - The Reality of the Boardroom How People, Power...

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The Reality of the Boardroom How People, Power and Politics Affect Practice - Imagine that directors behave rationally, discussions are analytical and that decisions are reached after a careful consideration of alternatives wrong since director’s behavior is influenced by interpersonal relationships, perceptions of postion and prestige and by the processes of power - CG involves the use of power. It is a political process! Sources of Governance Power - CG can be thought of as the way power is exercised over corporate entities. - Fundamental legal power of the board derives from the members who have delegated the running of the company to their directors - Power is reinforced by authority derived from the company’s constitution backed up by company law - Influences on board: - Power of individual directors derives from a variety of sources: Games Directory Play and the Manipulation of Meetings - Manner and form of communication is significant - Being a good listener is a hallmark of an effective director - Advance a case clearly and concisely and with conviction is also an important attribute - The effective director is aware that if a person’s proposal are rudely attacked he or she is more likely to counter-attack than have a change of mind - Games director play:
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Chapter 10 - The Reality of the Boardroom How People, Power...

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