A survey of the practices and features of boards of directors in mission hospitals in Kenya

Abstract

In today's turbulent environment the survival of organizations is dependent on the credibility and professionalism of its management. This means that, organizations that survive must be governed by people who know what the organizations are about, and have a clear vision and understanding of where they want to be in the years to come. This makes the issue of governance to be of critical importance in any type of organization. The concept of corporate governance is concerned with the way organizations are run. It primarily aims at influencing the means through which top management reach laid down company objectives. These means must be appropriate and rewarding to both the company and the immediate community or stakeholders Many modern organisations have come to be characterized by a clear separation of ownership from control. Today, shareholders especially in large organizations have minimal influence over corporate affairs other than voting in the AGM. The boards of directors, which they elect, have come to fill this gap thereby being the link between the owners and management. Thus an organisation's chances of success depend heavily on both the quality of the board and senior management. Such boards, it is expected will practice the tenets of good corporate governance. This study seeks to carry out a survey of the practices and features of the board of directors in mission hospitals in Kenya. The research design used in this study is the cross-sectional survey. It identifies the research population as those Christian mission hospitals affiliated to either CHAK or KCS in Kenya numbering 52 in total. It draws out a research sample by using stratified random sampling procedures to select the eventual number of 25 mission hospitals from two strata. The primary data was collected using a questionnaire administered by an interviewer. Secondary data was also utilised. Data was analysed using descriptive and inferential statistical methods. The findings show that other bodies other than boards of directors have a profound influence on the appointment of board members and therefore direction of decision-making. The boards also lack a clear succession policy hence eroding the ability to attract good management. Women are marginalised as much as transparency is stifled. All these factors hinder good performance of board of directors in these institutions. Even though the study had limitations such as time and financial resources among others, it proceeded to the end and recommends that empirical studies be carried out as well as formulation of theoretical models for corporate governance as an element of mission hospitals' development in Kenya. Continuous research is necessary to chart out a proper path for corporate governance in hospitals. Apt management practises in mission hospitals need to be enhanced.