What does the chairman of the board do?

The chairman of the board is the head of any commercial organization, whether it is a joint-stock company or a manufacturing enterprise. The functions of the chairman are in the general management of the production and economic activities of the company. It is he who bears full responsibility for all decisions made, for the results of the enterprise and the safety of its property.

More about the profession of chairman

The profession of the chairman of the board is very responsible and combines many responsibilities, so the manager, to cope with the load, delegates his powers to subordinates. Namely, at any enterprise and in each company there is necessarily a deputy chairman who organizes the work of the staff and, in case of any unforeseen circumstances, the acting chairman.

In addition, there are such positions as financial chairman (the head of the company’s finance department), commercial chairman (head of sales, marketing, and logistics departments in the company), and executive chairman (the head who has administrative and financial control, work with subcontractors and suppliers, organization of document flow in the company).

Places of work

As already mentioned, the chairman is necessary for any commercial company and enterprise. This is one of the most promising and highly paid positions.

History of the profession

The first chairmen of the board in history can be called factory managers in the 18th century, who performed all administrative functions while remaining employees of the owner of the enterprise.

Functions of the chairman of the board

The list of what the chairman does is very extensive and depends on the requirements of a particular company. The most common functions of the chairman include the following: Management of the financial and economic activities of the company.

Organizational work: the chairman must organize the activities of the entire company in such a way as to maximize the effectiveness of the results of the work of all departments.

Guarantee of legality in the work of the company. Fulfillment of orders of the owners of the company.

Drawing up long-term and short-term strategies for the development of the company.

One of the founders of the scientific theory of management, Henri Fayol, in 1916 identified five classic functions of the chairman of an organization, which are still studied in courses and seminars for middle and top managers. They combine almost all the activities of the chairman of the company.

Duties of the Chairman of the Board

In general terms, the duties of the chairman of the board are as follows:

  • Organization, coordination, and control of the work of the enterprise (company).
  • Organization of effective interaction of structural divisions of the company.
  • Strategic planning of enterprise development and implementation of these plans.
  • Participation in the formation of the budget and control of its implementation.

Ensuring effective document flow and timely movement of information in the company.

The list of what the chairman of the board does may differ depending on the scope and scale of the company.

Requirements for the Chairman of the Board

The main requirements are as follows:

  • Higher education (often required economic, legal, or relevant to the profile of the company).
  • 2 years of experience in a managerial position.
  • Experience in a field related to the activities of the company.
  • Knowledge of laws and regulations.
  • PC knowledge.

Sometimes such additional requirements are put forward, which are more related to the profile of the company.