Top Management

Corporate Management
 Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

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 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.