Evaluating corporate board cultures and decision making

Abstract

This paper relies on a “trinity of menetypes” of group knowing which captures the essential decision‐making dynamics of board membership. Formal, corporate decision‐making processes require higher commitments of time and cognitive energy of directors – certainly, the requirement is of non‐executive directors to make more formal contributions to the “political” process that determines corporate commitment to appropriate courses of action. There is a fundamental shift from “managerialism” to “politicism” in the corporate dynamics of organization – a shift in “menetype” driving governance dynamics. This wholesale shift in orientation has accentuated personal and group values as key determinants of corporate efficacy. The paper proposes structural reforms to corporate/agency governance conventions, including a greater focus on performance and strategy, greater independence of more effective and extensive audit processes and a greater transparency in the nomination and remuneration of top‐executive appointments.

Citation

Cutting, B. and Kouzmin, A. (2002), "Evaluating corporate board cultures and decision making", Corporate Governance, Vol. 2 No. 2, pp. 27-45. https://doi.org/10.1108/14720700210430324