An investigation into the impact of board structure on the performance of an organisation: The case of Doves Holdings (PVT) LTD

Abstract

This study sought to investigate the impact of board structure on the performance of an organisation with a main focus on Doves Holdings (Pvt) Ltd a company in the Funeral Assurance Industry for the period 2008 to 2012. Doves Holdings was once a market leader in the provision of funeral assurance and services in Zimbabwe before 2009. As at end of 2012, the company was third in terms of market share despite it having the largest asset base. Several strategies were formulated during the period under review to turnaround the organization but the company has failed to retain its position on the market. The company has a total of 7 directors and 12 senior management staff. The sample size in this study was 19 comprising of directors and management. A survey research strategy was employed, in this case the use of questionnaires hence minimizing systematic error and reducing and minimising subjectivity. Furthermore, the survey made data analysis easy through the use of quantitative methods of data analysis. A survey was conducted to gather data at Doves Holdings (Pvt) Ltd in Harare. A total of 19 questionnaires were distributed to directors and management of the company. Eighteen questionnaires were returned and validated. The analysis revealed that the boards do have an impact on the performance of the organization. The research also underscores the need for board independence and this can be achieved by having a proper board structure and composition that does not compromise its independence. The research also recommends that there should be gender diversity in the board structure. The implications of the results form a good basis for providing practical recommendations to the Funeral Assurance industry, and directions for further research.