The performance of any organization, may it be for profit or not for profit, heavily depends on the decisions that are made by the management of the organization. It is worth noting that decisions made in the organization differ greatly, depending on the position of those involved in making those decisions. The board is one body that plays a crucial role in determining the future of an organization, based on the nature of the decisions that they make. A board refers to a group of individuals who have been legally accorded the responsibility of governing an organization. Another key player in decision making is the finance director. Unquestionably, financial resources are one of the key resources for any organization, and for that reason, the contributions of the finance director influences the decisions that are undertaken or rather formulated by the board of directors. This easy seeks to critically analyze the nature of board level decisions as well as the contribution made by the finance director in the formulation of these decisions.
Composition of board members varies from one organization to another, depending on its nature as well as its objectives. Despite of these variations, the decisions made at the board level tend to be similar in one way or another. Being at the top in managerial rank in the organization, the nature of decisions that are made by the board varies a lot, as these decisions affect the organization in all perspectives, (Christopher, 2004). For instance, decisions made by the board influences the way the particular organization will be managed. The board is responsible for the selection and appointment of the chief executive, who is accorded the mandate to carry out administration duties in the organization. It is the duty of the board to determine how their organization is managed by for instance, reviewing and evaluating the performance of the chief executive on a regular basis based on leadership of the organization, planning and implementation of these plans, as well as management of the workforce. To some extent, the board also provides administrative guidance to the chief executive. Thus, one of the characteristics of the decisions that are made at the board level is that, these decisions influences the governance or rather management of the organization by the chief executive, (Bruce & Alexander, 2002).
Another characteristic of the decisions made at the board level is that, they influence the policies and objectives of the organization in general. Together with the chief executive, the board makes decisions on organization policies and objectives that are aimed at the general growth of the organization. They are also responsible for changing policies depending on the situations that the organization is facing. Some of the decisions made at the board level concerning organizational policies and objectives include assigning priorities as well as ensuring the capacity of the organization to undertake services/products/programs by a continuous review of its work, (Iti, 2009).
One of the responsibilities of the board is to ensure that there are adequate resources and that these resources are managed effectively. Therefore, another characteristics made at the board level is that they are always focused to resource acquisition and management. For instance, at one point the organization may be facing financial challenges which require considering alternative sources of funds. Some of the available options may include using external sources of funds such as a loan from a financial institution, or using internal sources such as increasing the share capital, (Soo, 2011). The board is obligated to give the final decision on the best alternative, based on the short-term and long-term objectives of the organization. Besides making decisions on acquisition of resources, the board also has to come up with the best ways...