Positive Interactions between CEO and Board Members for Better Corporate Performance

Internal Code: MAS5935

Literature Review

In the views of Garg, (2014), in an effective corporate organisation structure, the CEO proactively works so as to effectively communicate and to develop better relationships with the members of the board like directors, chairman through regular meetings and informal interactions apart from formal board meetings. Today, in the era of transparency and due to the emergence of new federal laws responsible for active board involvement, the positive communication and interaction between CEO and board is not considered as the soft function but it is treated as the major driver for the successful performance of corporate organisations (Cooper, et al., 2014). The type of interactions and communication that happen between CEO and board members are transparent, meaningful, precise, intellectual and trustworthy which in turn results in improving cohesiveness, coordination and cooperation between CEO and Board thereby raises the overall effectiveness of the organisation. According to Isidro and Sobral, (2015), as the growth and development of any corporate organisation is the combined responsibility of the CEO and the members of the board, therefore it is necessary for board and CEO to communicate, interact and discuss the key issues and problems, develop and recommend business plans, implement all approved plans and innovative strategies, oversee the financial management, oversee administration and operations, discuss about the performance and growth of employees and interact about legal compliance and the goodwill of the organisation in the market. These all responsibilities of CEO/Board could be handled efficiently through constructive feedbacks and positive interactions and communications among them either in a formal or informal manner.