Citation Matching

Citation Reference: Establishing and Evaluating Competence ¶ 1

Citation Guidance: Management, with board oversight, defines the human capital needed to carry out strategy and business objectives. Understanding the needed competencies helps in establishing how various business processes should be carried out and what skills should be applied. This begins with the board of directors relative to the chief executive officer, and the chief executive officer relative to the management and personnel of each of the divisions, operating units, and functions in the entity. That is, the board of directors evaluates the competence of the chief executive officer and, in turn, management evaluates the competence across the entity and addresses any shortcomings or excesses as necessary.