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Generally, a company's top managers are appointed by its board of directors supposedly representing shareholders. In...

Generally, a company's top managers are appointed by its board of directors supposedly representing shareholders. In your opinion, what should the primary objective(s) of a company's managers be? Whose interests should they take into account when making managerial decisions?

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Answer #1

The Board of Directors of a company as the renowned persons among the organization itself. They are a few capable representatives of the organization who are chosen to choose the real heads of the company.

The primary objective of the company's managers must be to ensure optimum utilization of the resources available with the organization be it physical or human to bring out the maximum output. The managers must ensure that the company works smoothly by earning satisfactory profits by employing capable emloyees and upgraded technology.

The top managers must assume their duty to keep the interests of the company's shareholders on the first priority. As they are the real functionaries of the organization and even BOD is chosen amongst them. So, the interests of the shareholders would subsume that of the BOD as well.

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