Like everyone else, board members have had to quickly adapt to the new environment triggered by Covid-19 and innovate in their day-to-day work.
The Main Privileges of Virtual Board Meetings
The main benefits of using virtual board meetings are:
- contradictions between management and other interested parties (owners, employees, suppliers, consumers, and others) regarding the vision and development goals of the company;
- contradictions between branches and/or divisions of the company in matters of the inconsistency of goals and objectives, provision of resources, empowerment, and distribution of responsibility;
- contradictions between management and employees of all levels in the field of understanding and accepting the vector of the company’s development, goals, and objectives;
- contradictions between the goals and characteristics of the current environment and the internal characteristics of the company.
Nevertheless, a whole range of issues remains unresolved regarding the formation of such a model of a personnel management system that would fully comply with the modern and, importantly, the future requirements of the production subsystem. Personnel management as a service subsystem should reflect current trends and allow to effectively implement the main strategic focus in the development of the organization – quality and complete satisfaction of customer needs while optimizing costs. “At each enterprise, the” dictatorship of quality “should become an indicator of professionalism in the organization of production”. Besides, in the current conditions, one can argue about the existence of not only the scientific significance of this study in terms of the presence of certain controversial issues.
The Main Goals of Virtual Board Meeting for Board Directors
1. Achievement of the goals set for the company.
It is obvious that the main influence on the performance of the company is exerted by its management. At the same time, the Board, ensuring the formation of a highly professional team of top managers, creating effective motivational mechanisms, is able to influence the incentives of top management to fulfill their duties conscientiously. Moreover, the long-term success of the company depends on the strategy formulated by the Board of Directors. The achievement of the goals set for the company shows how effective the efforts of the Board of Directors are in building a high-quality corporate governance system.
2. Availability and quality of the required internal documents.
In the performance of its duties, the Board should be guided by a set of clear and approved procedures, enshrined in internal documents. This practice should be extended by the Council to all levels of the organization. It is clear, however, that the scale of this practice will differ depending on the size of the company. In a large corporation, where there are many hierarchical levels, it is required to consolidate regulations and procedures in separate internal documents, which, firstly, regulate the issues of competence and powers, and, secondly, determine the mechanisms of interaction between different levels of the hierarchy. The best corporate governance practice has generally developed an indicative list of requirements.
3. Impact of the board meetings on improving the company’s image.
In its activities, the board must take into account the development of all types of capital, including reputation capital, which has a direct impact on the perception of the company in the eyes of investors, counterparties, and clients. The contribution of the Board of Directors to the development of reputation capital can be expressed in regular consideration of issues of improving the company’s image or personal participation of the Board of Directors in creating a positive image of the company.