Organizational Structure Process Of Organizational Ownership And Control Essay

1409 Words6 Pages
Organizational changes include, but are not limited to mergers, acquisitions, affiliations, and consolidations, which affect the roles of the governing bodies, professional staff organizers, senior level managers and the chief executive officer in differing ways. The GBs of an organization play an instrumental role in the modification process of organizational ownership and control. One of the core responsibilities of the GB is to represent, balance, preserve, and advance the interests of its various stakeholders in the entity (Longest & Darr, 2000, pg.68). The various stakeholders include employees, shareholders, the government and the surrounding community of the organization. Board members are obligated to act in good faith and use their authority to promote the best interests of the stakeholders and the organization they govern (Kazemek, 2009). Furthermore, it is necessary for GBs to exercise their fiduciary duty to preserve the organization’s long‐term goals and to sustain the mission that it has originally played a part in formulating. In this context, a fiduciary responsibility is one of trust; it means that one acts to the best of one’s ability in the interest of another, not in self-interest; GBs act on behalf of the stakeholders (Schyve, 2009).
During a change in organizational ownership and control, GBs must transcend their typical role. Initially, the GBs must assess the readiness of the organization in participating in an organizational change. For example,
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