Basic Nonprofit Board Voting Procedures

Most organizations have a nominating or governance committee that is responsible for recommending new board members to the full board. 

The Meaning of Nonprofit Board Voting Procedures

Any nonprofit board voting procedure is not a static system. It is in the process of constant development. And the degree of sustainability of this development depends on the flexibility of the enterprise, its mobility in managing its resources. An employee as an “element of the total human capital of an organization” must have a whole set of characteristics that allow a business entity to effectively achieve its goals. These characteristics at the present stage include not only the traditional qualities of the workforce (qualifications, education, work experience) but also new requirements (innovative abilities, the ability to work in a team, self-leadership, etc.).

The effectiveness of the nonprofit board voting procedures depends on the “tuning” and consistency of all its subsystems. This fully applies to the personnel management system of the enterprise. The philosophy of working with “human capital” is adopted in the organization, expressed in the optimization of its structure, cost, development, and determines the principles that should be used as the basis for building a personnel management system.

This is precisely the essence of boarding voting procedures: on the one hand, as a science that formulates the main provisions of management theory, and on the other, as a practice of their use, as a manifestation of the art of organization and creating the necessary and sufficient conditions for the successful work of the work collective.

What Are the Basic Nonprofit Board Voting Procedures?

  1. The influence of the nonprofit board voting procedures on the personnel policy of the company at the top management level. Attracting high-class managers with the necessary skills and competence requires the Board to regularly consider at meetings the issues of attracting and retaining top managers. The board should assess to what extent the solutions it implements to ensure the availability of a talent pool for filling the position of general manager and help attract high-quality professionals to key managerial positions in the company.
  2. Effectiveness of protecting the interests of shareholders and other participants in the nonprofit board voting procedures. The Board is a representative of the interests of shareholders and must promptly respond to requests and complaints from shareholders. The Board should consider at the meetings the incoming appeals and complaints of the shareholders.
  3. Evaluation of the quality of the nonprofit board voting procedures by top management, constructive relationship with management. The Board in its activities should regularly interact with the top management of the company to convey the position of the Board and shareholders of the company. Its clarification on certain topical issues contributes to the elimination of conflicts at an early stage. The top management of the company must assess how effectively the Board communicates its opinion and the position of shareholders to it.
  4. At the same time, there is no doubt about the fact that personnel motivation is only one of the elements of personnel management and cannot be fully identified with personnel management in an organization.
  5. Availability of a risk management system. The board should ensure that a risk management system is established in the company by assigning appropriate practical tasks to top management and monitoring their implementation. The basis for such an assessment can be the report of the senior management member responsible for this area, and the expert assessment of the quality of the risk management system, given by independent experts or the company’s internal audit service.