The board of directors as an influence in organizational learning

Another area of influence is the Board of Directors. Tainio, Lilja, and Santalainen suggest, "Boards represent the interests of the firm's shareholders...they have the power to hire, fire, and compensate senior executives and to provide high level counsel.; By performing these tasks, boards can facilitate or limit organizational learning". The insurgence of shareholders involvement is due largely to the mismanagement of many high profile companies in the 1990s, according to Tainio et al. This insurgence in board activity and influence on organizations has prompted significant changes in organizational learning. In turn, the situation has redefined the role of boards in many organizations. Tainio et al. suggest, "There is actually a fine line between managing a company and contributing ideas for managing a company". Boards who have become more active do not manage the nitty-gritty of daily operation, they press organizations to maintain high standards, closely watch goals and planning, and take a more active role in management succession.