What does the oversight function of the Board of Directors entail?

The oversight function of the Board of Directors is primarily focused on overall governance and the strategic direction of the organization. This role involves not just setting policies and providing guidance, but also ensuring that management is effectively executing the organization's strategy while adhering to applicable laws and regulations.

By delegating certain responsibilities, the Board allows management to handle daily operations while maintaining the authority to oversee and assess the performance of those operations. This delegation is essential to create a clear separation between governance and management, ensuring accountability and strategic alignment throughout the organization.

Establishing the mission of the organization and deciding on employee salaries are also important functions, but they fall under the broader governance framework that the Board oversees rather than the direct aspect of oversight itself. Daily management of staff is typically the responsibility of executives or management rather than the Board, making the governance aspect the primary focus of their role.