Author Question: Differentiate between inside directors and outside directors. What will be an ideal ... (Read 79 times)

APUS57 · **on:** Jul 7, 2018

Differentiate between inside directors and outside directors.

What will be an ideal response?

Question 2

A goal of laboratory learning is to _____.

a. improve the structure of organizations
b. increase awareness of personal style
c. promote a feeling of support and warmth among members
d. increase productivity
e. answers b and c

janieazgirl · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

There are two kinds of directors: inside directors and outside directors. Inside directors are directors who also hold offices in a company's formal hierarchy; they are full-time employees of the corporation. Outside directors are not employees of the company; many are professional directors who hold positions on the board of many companies, or they are executives of other companies who sit on other companies' boards. The goal of having outside directors is to bring objectivity to a company's decision-making and to balance the power of inside directors, who obviously side with an organization's management. In practice, however, inside directors tend to dominate boards because these people have access to the most information about the company, and they can use that information to influence decision-making in management's favor.

Answer to Question 2

b