Assessment of the quality of the work of the board meeting evaluation should be aimed at determining the degree of efficiency of the work of the board of directors, committees, and members of the board of directors.
The Essence of Board Meeting Evaluation
At the present stage of development of the theory and practice of board meeting evaluation, quite a lot of concepts have been formed, characterized by varying degrees of approbation and reliability. The entire set of developed concepts, lined up in chronological sequence, allows you to study the genesis of scientific thought in the field of personnel management. The service industry has undergone significant changes lately. In a tough competition for modern service organizations, the problems of business culture are inextricably linked with corporate culture, which gives people an idea of the nature of the enterprise’s activities, generally accepted values, attitudes, philosophy, mission, and other constituent components of the concept.
Board meeting evaluations are benchmarks – what organizations believe in, which is why we so often find that the organizational culture described on paper does not correspond to the real state of affairs. Even when there are specially developed and recorded values (and for organizations, this is the exception rather than the rule), people working in the organization adhere in practice to completely different values. These hidden indicators of culture can only be revealed using certain approaches and methods.
Board meeting evaluation is defined as a process of purposeful ordering of the socio-economic system, carrying out social reproduction, transforming (changing) under the influence of external factors (economic turnover of economic resources – capital turnover) and internal environment (market dynamics – sectoral and general economic). A developed board meeting evaluation contributes to success, prosperity, and stability, and also increases the efficiency of the service enterprise. That is why the study, formation, and regulation of corporate culture are so important today.
The Main Principles of Board Meeting Evaluation Conduction
Check the most important principles of board meeting evaluation conduction below:
- Boards of directors should, under the direction of the chairman, conduct an annual, properly structured assessment of their performance.
- A systematic assessment process is a necessary tool to enhance the professionalism of the company’s board of directors, as it emphasizes the tasks of the board and the responsibilities of its members.
- Evaluation plays an important role in identifying the required competencies and the reputation of board members.
- Evaluation is a useful incentive for individual board members to spend sufficient time and make the necessary efforts to fulfill their duties as board members.
- The assessment should focus on the performance of the board of directors as a separate governing body. It can also include an assessment of the performance and contribution of an individual board member.
- Board evaluations should be undertaken under the responsibility of the chairman and in line with evolving best practices. If necessary, you can resort to external or independent expertise.
- Board evaluation should contribute to revising issues such as the size of the board, its composition, and the amount of remuneration paid to members of the board of directors.
- Evaluation can also play an important role in developing effective and appropriate induction and training programs for new and existing board members of SOEs.
- The results of the assessment can be used for the future process of forming the new composition of the council. The board’s assessment may direct the owner’s attention to the need to attract members with specific experience and qualifications to the board of directors.