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Role of Security Manager

In: Business and Management

Submitted By EmilioEmilio
Words 7682
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INTRODUCTION

CEO duality happens when the same person occupies both the CEO and chairing the board in a corporation. On the other hand, if different individuals serve in these two pivotal positions, the firm can be said to adopt a separate leadership structure. The fundamental question surrounding CEO duality leadership is whether the chairperson‘s position should be filled by the CEO or by a different person (Daily & Dalton, 1997). The all round concern has been whether one person‘s positioning at the corporate pivotal positions of CEO and board chairperson weakens corporate governance effectiveness, leading to managerial opportunism and resulting in reduced firm performance (Brickley, Coles, & Jarrell, 1997; Finkelstein & D‘Aveni, 1994). From the agency theory perspective, having one individual in charge of both management implementation and control is not consistent with the concept of checks and balances. However, from an organization theory perspective, CEO duality may enhance organizational efficiency in corporate leadership.

Most theoretical arguments against the practice of CEO duality leadership have centered on the issue of power concentration on dual CEO (Brockmann, Hoffman, Dawley, & Fornaciari, 2004; Daily & Dalton, 1997). Duality has been described as a concentration of power on the dual CEO, enabling dual CEOs to dominate the board, reducing board effectiveness in monitoring and controlling the management’s performance. CEO duality leadership implies a heightened formal authority and greater informal power for the one individual who occupies two positions, both as CEO in management implementation and board chairperson in management control. In addition to formal hierarchical power on the executive team derived from the position as CEO, by virtue of their position as chairperson of the board, dual CEOs can exert substantial…...

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