Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Board processes, task performance and effectiveness : a South African perspective
Thesis (MCom)--Stellenbosch University, 2024.
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | en_ZA |
| Published: |
Stellenbosch : Stellenbosch University
2025
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613910533668864 |
|---|---|
| access_status_str | Open Access |
| author | Coetzee, Dominique |
| author2 | De Vries, A. |
| author_browse | Coetzee, Dominique De Vries, A. |
| author_facet | De Vries, A. Coetzee, Dominique |
| author_sort | Coetzee, Dominique |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description |
Thesis (MCom)--Stellenbosch University, 2024. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/131624 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:43:39.397Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/131624 Board processes, task performance and effectiveness : a South African perspective Coetzee, Dominique De Vries, A. Mans-Kemp, Nadia Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management. Corporate governance -- Law and legislation -- South Africa Directors of corporations -- Legal status, laws, etc -- South Africa Corporation law -- South Africa Boards of directors -- South Africa UCTD Thesis (MCom)--Stellenbosch University, 2024. ENGLISH SUMMARY: The board of directors is deemed the focal internal corporate governance mechanism. The primary role of this leading corporate team is to act in the best interests of shareholders and other key stakeholders. The way in which board members interact with each other and how they work together as a team should be explored to ultimately understand the effectiveness of a board. In turn, research shows that board effectiveness has a substantial impact on corporate financial performance and the board’s ability to add value to the company. Prior researchers primarily followed a direct approach to board research (i.e. the so-called input-output model) by incorporating board characteristics and corporate financial performance. To combat the criticism raised against this method, other researchers implemented the procedural approach (i.e. the process-output model). The latter approach incorporates board processes, thereby allowing researchers to investigate directors’ decision-making capabilities and ultimately, board performance. However, very few researchers have combined these approaches to follow an integrative approach to board research (i.e. the input-process-output (I-P-O) model). To the best of the researcher’s knowledge, this model or any variation thereof has not been applied in South Africa to conduct board research. Given the identified gap in the literature to explore the application of the I-P-O model in the local context, the primary objective of this study was to determine whether board task performance mediates the relationship between board processes and board effectiveness. Additionally, the inter-relationships between the underlying constructs of the I-P-O model, i.e. board characteristics, processes, task performance and board effectiveness were also investigated. Directors of public and private companies in South Africa were invited to participate in this study, irrespective of their specific board position (executive, non-executive or independent non-executive). Quantitative data were gathered by means of an electronic questionnaire. A total of 105 complete responses were collected from directors. Pertaining to the descriptive results of the investigated board processes, most respondents had positive perceptions concerning the interactions and behaviour of their board members. The sampled directors also viewed their boards as effective, cohesive units that add value to their companies. Areas for improvement were, however, identified, namely that boards should pay more attention to their mentoring role and the formal evaluation of board members. Directors should also increase their engagement in their chief executive officer’s succession planning. The relevance of affective conflict in the boardroom was also highlighted. The study’s inferential results show that board processes are stronger predictors of board effectiveness than board characteristics in the South African context. Significant direct paths were established between the various board processes and board effectiveness. All but one of the 21 investigated mediating relationships (indirect paths) were statistically significant. The effect of board cohesiveness on board effectiveness, when mediated via the service task, was non-significant. Boards of directors are, therefore, encouraged to reflect on the reported results to enhance their collaboration and decision-making capabilities in the boardroom. Nomination committees should also give attention to the optimal utilisation of human resources in the upper echelons to ensure that board processes and the completion of board tasks ultimately enhance board effectiveness. Training sessions can be facilitated for current and prospective directors on how certain socio-psychological aspects could impact the effectiveness of their boards. If board effectiveness can be improved, various stakeholders might benefit from the related outcomes. AFRIKAANSE OPSOMMING: Die direksie word beskou as die kern interne korporatiewe bestuursmeganisme. Die primere rol van hierdie leidende korporatiewe span is om in die beste belang van aandeelhouers en ander sleutelbelanghebbendes op te tree. Die manier waarop raadslede interaksie het met mekaar en hoe hulle as ‘n span saamwerk, moet ondersoek word ten einde die doeltreffendheid van ‘n raad van direkteure te verstaan. Verder toon navorsing dat direksiedoeltreffendheid ‘n wesenlike impak het op korporatiewe finansiele prestasie en die direksie se vermoe om waarde tot die maatskappy toe te voeg. Voormalige navorsers het hoofsaaklik ‘n direkte benadering tot direksienavorsing gevolg (m.a.w. die sogenaamde inset-uitset model) deur direksie-eienskappe en korporatiewe finansiele prestasie in te sluit. Om die kritiek teen hierdie metode te bestry, het ander navorsers die prosedurele benadering (m.a.w. die proses-uitset model) geimplementeer. Die laasgenoemde benadering sluit direksieprosesse in, en daardeur word navorsers in staat gestel om direkteure se besluitnemingsvermoens en uiteindelik, direksieprestasie te ondersoek. Baie min navorsers het egter hierdie benaderings gekombineer om ‘n geintegreerde benadering tot direksienavorsing te volg (m.a.w. die inset-proses-uitset (I-P-U) model). Tot die beste van die navorser se kennis, is hierdie model, of enige variasie daarvan, nog nie in Suid-Afrika toegepas om direksienavorsing te doen nie. Gegewe die geidentifiseerde navorsingsgaping om die toepassing van die I-P-U-model in die plaaslike konteks te verken, was die primere doelwit van hierdie studie om te bepaal of direksietaakprestasie die verhouding tussen direksieprosesse en direksiedoeltreffendheid bemiddel. Daarbenewens is die interverwantskappe tussen die onderliggende konstrukte van die I-P-U-model ook ondersoek, naamlik direksie-eienskappe, prosesse, taakprestasie en doeltreffendheid. Direkteure van openbare en private maatskappye in Suid-Afrika is versoek om aan die studie deel te neem, ongeag hul spesifieke direksieposisie (uitvoerend, nie-uitvoerend of onafhanklik nie-uitvoerend). Kwantitatiewe data is deur middel van 'n elektroniese vraelys ingesamel. Altesaam 105 volledige vraelyste is van direkteure verkry. Met betrekking tot die beskrywende resultate van die direksieprosesse wat ondersoek is, het die meerderheid van die respondente positiewe persepsies gehad rakende die interaksies en gedrag van hul direksielede. Die direkteure in die steekproef het ook hul direksies as doeltreffende, samehorige eenhede beskou wat waarde tot hul maatskappye toevoeg. Ruimte vir verbetering is egter geidentifiseer, insluitend dat direksies meer aandag moet skenk aan hul mentorskaprol en die formele evaluering van direksielede. Direkteure moet ook hul betrokkenheid by hulle hoof uitvoerende beampte se opvolgingsbeplanning verbeter. Die beduidende rol van affektiewe konflik in die raadsaal is ook uitgelig. Gebaseer op die studie se inferensiele resultate, is direksieprosesse sterker voorspellers van direksiedoeltreffendheid as direksie-eienskappe in die Suid-Afrikaanse konteks. Beduidende direkte verhoudings is bevestig tussen die verskillende direksieprosesse en direksiedoeltreffendheid. Almal behalwe een van die 21 bemiddelingsverhoudings (indirekte verhoudings) wat ondersoek is, was statisties beduidend. Die effek van direksiesamehorigheid op direksiedoeltreffendheid, wanneer dit deur die dienstaak bemiddel word, was nie beduidend nie. Direksies word dus aangemoedig om te besin oor die gerapporteerde resultate om hul samewerking en besluitnemingsvermoens in die raadsaal te verbeter. Nominasiekomitees moet ook aandag skenk aan die optimale benutting van menslike hulpbronne in die hoogste besluitnemingstrukture van die onderneming om te verseker dat direksieprosesse en die voltooiing van direksietake uiteindelik direksiedoeltreffendheid verbeter. Opleidingsessies kan vir huidige en voornemende direkteure gefasiliteer word rakende hoe sekere sosio-sielkundige aspekte die doeltreffendheid van hul direksies kan beinvloed. Indien direksiedoeltreffendheid verbeter kan word, mag verskeie belanghebbendes moontlik baat vind by die verwante uitkomste. ISISHWANKATHELO NGESIXHOSA: Ibhodi yabalawuli ithathwa njengeyona ndlela iphambili yolawulo lwangaphakathi lwenkampani. Indima ephambili yeli qela liphambili lenkampani kukuba lenze okona kulungileyo kubanini zabelo kunye nabanye abachaphazelekayo abaphambili. Indlela amalungu ebhodi asebenzisana ngayo kunye nendlela abasebenza ngayo njengeqela kufuneka ihlolwe ekugqibeleni ukuqonda ukusebenza kwebhodi. Kwelinye icala, uphando lubonisa ukuba ukusebenzisana kwebhodi kunempembelelo enkulu ekusebenzeni kwemali yenkampani kunye nokukwazi kwebhodi ukongeza ixabiso kwinkampani. Abaphandi bamandulo ngokuphambili balandela indlela ethe ngqo yophando lwebhodi (ukutsho oko ebizwa ngokuba yi-input-output model) ngokudibanisa iimpawu zebhodi kunye nokusebenza kwemali yenkampani. Ukulwa ukugxekwa okuphakanyiswe ngokuchasene nale ndlela, abanye abaphandi baphumeza indlela yenkqubo (ukutsho oko i-process-output model). Le ndlela yokugqibela ibandakanya iinkqubo zebhodi, ngaloo ndlela ivumela abaphandi ukuba baphande amandla okwenza izigqibo zabalawuli kwaye ekugqibeleni, ukusebenza kwebhodi. Nangona kunjalo, bambalwa kakhulu abaphandi abaye badibanisa ezi ndlela ukulandela indlela edibeneyo yophando lwebhodi (oko kukuthi imodeli ye-input-process-output (I-P-O). Ngokolona lwazi luphangaleleyo lomphandi, le modeli okanye naluphi na uguqu-guquko lwayo aluzange lusetyenziswe eMzantsi Afrika ukuqhuba uphando lwebhodi. Ngenxa yaso ke isithuba esiqatshelweyo kwiincwadi zokuphonononga ukusetyenziswa kwemodeli ye-I-P-O eMzantsi Afrika, eyona njongo yolu phononongo yayikukumisela ukuba ngaba ukusebenza kwebhodi kulamla ubudlelwane phakathi kweenkqubo zebhodi kunye nentsebenzo yebhodi. Ukongezelela, ubudlelwane obuphakathi kweengcamango zokwakhiwa kwemodeli ye-I-P-O, oko kukuthi iimpawu zebhodi, iinkqubo, ukwenziwa komsebenzi kunye nempumelelo yebhodi nazo zaaphandwa. Abalawuli beenkampani zikarhulumente nezabucala eMzantsi Afrika bamenywa ukuba bathathe inxaxheba kwesi sifundo, kungakhathaliseki isikhundla sabo sebhodi esithile (isigqeba solawulo, esingenalawulo okanye ezizimeleyo ezingekho phantsi kolawulo). Iinkcukacha zobungakanani zaqokelelwa ngendlela yephepha lemibuzo le-elektroniki. Iimpendulo ezipheleleyo ezili-105 zizonke zaqokelelwa kubalawuli. Ngokubhekiselele kwiziphumo ezichazayo zeenkqubo zebhodi eziphandwayo, uninzi lwabaphenduli babeneengcambu ezakhayo malunga nokusebenzisana nokuziphatha kwamalungu ebhodi yabo. Abalawuli abasampuliweyo nabo bajonga iibhodi zabo njengezisebenzayo, iiyunithi ezimanyeneyo ezongeza ixabiso kwiinkampani zazo. Iindawo zokuphucula nazo zachongwa, nangona kunjalo, oko kukuthi iibhodi kufuneka zinikele ingqalelo ngakumbi ekubeni ngabacebisi (mentoring) kunye novavanyo olusemthethweni lwamalungu ebhodi. Abalawuli kufuneka kwakhona bandise ukuzibandakanya kucwangciso lokulandelana kwegosa labo eliyintloko. Ukubaluleka kokuphikisana okwakhayo kwigumbi lebhodi nako kwagxininiswa. Iziphumo eziyintsingiselo zophononongo zibonisa ukuba iinkqubo zebhodi zizikhombandlela ezinamandla ngokusebenza kwebhodi kuneempawu zebhodi kwimeko yoMzantsi Afrika. Iindlela ezibalulekileyo ezithe ngqo zamiselwa phakathi kweenkqubo ezahlukeneyo zebhodi kunye nokusebenza kwebhodi. Zonke ngaphandle kwenye ye-21 koluphando lobudlelwane (iindlela ezingathanga ngqo) zazibalulekile ngokwezibalo. Impembelelo yokubambisana kwebhodi ekusebenzeni kwebhodi, xa kulamlwa ngomsebenzi wenkonzo, yayingabalulekanga. Ngoko ke, iibhodi zabalawuli ziyakhuthazwa ukuba zicingisise ngeziphumo ezichaziweyo ukuphucula intsebenziswano yabo kunye nezakhono zokuthatha izigqibo kwigumbi lebhodi. Iikomiti zokutyumba kufuneka kwakhona zinike ingqalelo ekusetyenzisweni ngokufanelekileyo kwabantu kumanqanaba aphezulu ukuqinisekisa ukuba iinkqubo zebhodi kunye nokugqitywa kwemisebenzi yebhodi ekugqibeleni kuphucula ukusebenza kwebhodi. Iiseshoni zoqeqesho zingaququzelelwa kubalawuli abakhoyo kunye nabaza kubakho malunga nendlela iinkalo ezithile zentlalo-ngqondo zinokuchaphazela ukusebenza kweebhodi zabo. Ukuba ukusebenza kwebhodi kunokuba kuphuculwe, abathathi-nxaxheba abahlukahlukeneyo banokuzuza kwiziphumo ezinxulumene nazo. Masters 2025-01-29T14:00:23Z 2025-01-29T14:00:23Z 2024-12 Thesis https://scholar.sun.ac.za/handle/10019.1/131624 en_ZA Stellenbosch University xx, 250 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Corporate governance -- Law and legislation -- South Africa Directors of corporations -- Legal status, laws, etc -- South Africa Corporation law -- South Africa Boards of directors -- South Africa UCTD Coetzee, Dominique Board processes, task performance and effectiveness : a South African perspective |
| title | Board processes, task performance and effectiveness : a South African perspective |
| title_full | Board processes, task performance and effectiveness : a South African perspective |
| title_fullStr | Board processes, task performance and effectiveness : a South African perspective |
| title_full_unstemmed | Board processes, task performance and effectiveness : a South African perspective |
| title_short | Board processes, task performance and effectiveness : a South African perspective |
| title_sort | board processes task performance and effectiveness a south african perspective |
| topic | Corporate governance -- Law and legislation -- South Africa Directors of corporations -- Legal status, laws, etc -- South Africa Corporation law -- South Africa Boards of directors -- South Africa UCTD |
| url | https://scholar.sun.ac.za/handle/10019.1/131624 |
| work_keys_str_mv | AT coetzeedominique boardprocessestaskperformanceandeffectivenessasouthafricanperspective |