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Journal cover: Corporate Governance

Corporate Governance

ISSN: 1472-0701

Online from: 2001

Subject Area: Business Ethics and Law

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Evaluating corporate board cultures and decision making

Document Information:
Title:Evaluating corporate board cultures and decision making
Author(s):Bruce Cutting, (Bruce Cutting is a Management Consultant, in Canberra, Australia.), Alexander Kouzmin, (Alexander Kouzmin is Chair of Organizational Behaviour, at the Cranfield School of Management, Cranfield University, Cranfield, UK.)
Citation:Bruce Cutting, Alexander Kouzmin, (2002) "Evaluating corporate board cultures and decision making", Corporate Governance, Vol. 2 Iss: 2, pp.27 - 45
Keywords:Corporate culture, Decision making, Directors, Effectiveness
Article type:Conceptual Paper
DOI:10.1108/14720700210430324 (Permanent URL)
Publisher:MCB UP Ltd
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.

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