THE BOARD’S ROLE IN HUMAN RESOURCE MANAGEMENT.

When determining the role of the board of directors in matters relating to human resources, it is critical to recognize and respect the difference between governance and management. This seemingly innocuous difference is often sticky for nonprofit organizations, both large and small. Questions we often encounter include, should the board approve all salaries, or just those of the chief executive? Should a board member be permitted to give feedback to the chief executive about a subordinate’s performance? If a staff member has a grievance, should he go to the board? How can the board’s finance committee be helpful in hiring a director of finance without usurping the hiring responsibilities of the executive staff? This white paper provides insight into best practices for boards when it comes to matters of human resources.