Role Conflict and Relation

Introduction to Role Conflict

The different roles that non-executives are expected to play provide potential for conflict. In developing strategy, co-operation between the executive and non-executive directors is essential. All directors are expected to work together as part of a team in pursuit of a common purpose. However, the monitoring role that non-executive directors also have means that they must assess the performance of executive directors. Disputes between executive and non-executive directors can easily arise over the company's financial systems, control systems and remuneration systems. Given this potential conflict, non-executive directors must tread carefully and should retain a certain distance from the executive directors to maintain their independence.

Relations with the executive directors

The potential for disputes may make the non-executive and executive directors wary of each other. Executive directors may resent the presence of non-executives on the board because they believe that the non-executives

  • are monitoring their behaviour and, effectively, acting as 'corporate policemen';
  • do not fully understand the nature of the business of company; and
  • do not devote enough time and effort in carrying out their duties.

Non-executives, on the other hand, may sense that executives are acting in an unhelpful or guarded manner towards them. They may feel that executive directors are seeking to undermine their position by

  • withholding key information or reports;
  • failing to provide important information at the required time; and
  • holding informal meetings on important matters to which the non-executives are not invited.

The chairman of the board can play a significant part in overcoming these suspicions and problems.

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