Improvement of system of corporate management organs by forming shadow board
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2017, Vol 81, Issue 3
Abstract
The article determines that the current existing system of corporate management organs of ajoint-stock company needs improvement in the direction of preparation of labour reserve. The expediency of forming labour reserve by board of directors in the joint-stock company is considered by the improvement of the system of corporate management organs and forming in its composition an alternative organ called a shadow board. The article determines that the activity of board of directors is carried out on the basis of conservative strategy, which consists of a careful conduct at the acceptance of administrative decisions. It is set that the activity of bord of directors is conservative from dependence on shareholders who appoint them. The paper proves the efficiency of combination of conservative strategy of making decision suggested by the board of directors with the aggressive strategy of the alternative organ, which must be the prototype of board of directors, but it must operate within the limits of aggressive strategy. It is proved that the synergy of conservative and aggressive strategy of forming suggestions by the board of directors of the joint-stock company with the use of additional working organ (shadow board) will bring an effect. The effect from such synergy is the upgrading of making decisions by the board of directors. The place of shadow board in the system of corporate management organs is outlined. The analogy of shadow board’s activity similar to the activity of board of directors of the joint-stock company is shown. The features of co-operation of board of directors and shadow board are marked. The features of forming committees as a part of a shadow board and a general committee with a board of directors are outlined. The article deals with the key role of the shadow board in the preparation of skilled reserve of board of directors of the joint-stock company and in providing more aggressive strategy for making decisions. The paper outlines the process of forming board of directors’s labour reserve with the use of the shadow board on the basis of six stages: raising the task; the determination of organizational moments by forming the shadow board; forming high-quality composition of the shadow board; candidates’s practical activity as a part of the shadow board; the estimation of activity efficiency (of utility) aof participant of the shadow board for the board of directors; inferencing about future possibility of shadow board’s participant work in composition the board of directors in the context of skilled reserve.
Authors and Affiliations
V. P. Holiver
Keywords
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- EP ID EP274160
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