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Understanding the Behavior of Nonprofit Boards of Directors

Essay by   •  September 24, 2012  •  Research Paper  •  272 Words (2 Pages)  •  1,430 Views

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Discussion Forum 1

Liberty University

BUSI 602-B02

The article written by Wannsie Hird highlights the role of the board members. The author speaks to the responsibilities written by worth (2011) about directors and how directing and monitoring the activities of management in the interest of the owners. The basic responsibilities of the non- profits have gaps which prompted Miller-Millesen (2003) to suggest there has been an increased in attentions to the authority to directors along with interest in understanding governance. The Author informs us that clarity was needed for way boards members were operating. The manager theories included "three theories to highlight the responsibilities of the board of directors, which are Agency theory, Resource theory and Institutional theory" (Miller-Millesen, p.522).

The author expands on three of the theories, the first being agency theory which dictates directors to act as a type of monitor and gate keeper to the managers of an organization. According to the author this helps to protect the stakeholders. The second theory, the author speaks to is resource dependence theory which positions board members to be responsible for access and allocation of resources. The third theory is institutional theory; this helps one to see how the organization is shaped by the institutional' internal and external pressures, norms, rules and fear of sanctions (Miller-Millesen, 2003, p. 522).

The bible lets us know peace and order should be the focus. The need to move forward and grow should be clothed with peace and order. 1 Corinthians 14:40"Let all things be done decently and in order."

Reference

Millesen-Miller, J.(2003). Understanding the Behavior of Nonprofit Boards of Directors: A Theory-Based Approach. Nonprofit and Voluntary Sector (32), 521-547.

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