Corporate Management Structure
A proper corporate management structure will help you manage your business efficiently. A company should determine the type of structure that best matches its objectives and the industry. It must also assess its current structure and make any needed adjustments. All changes should be communicated to the employees, especially when the company is undergoing restructuring. This could lead to cynicism within the employees.
The top level of a corporation consists of the board of directors and the executive officers, including the chief executive officer (CEO). The CEO is accountable for the day-to-day business operations and has control over the majority of legal business activities. Shareholders are also a part in the corporate structure, but they are not involved in day-to-day business. They are the ones who oversee budgets and can vote on major decisions.
Staff managers are below the direction of the board of directors. They work with executives at higher levels to establish policies. Staff managers can be divided into functional departments, which allows each department to work independently and optimizes efficiency for a specific business function. They can also be placed in divisional departments. This is a good option for companies with multiple products and need to react quickly to market changes.
A circular structure is similar in concept to a functional or divisional structure. However, instead of the chain of command running vertically, this structure is run horizontally across departments. It’s a great way to improve communication and collaboration between departments. It can also create more trust among employees and foster an homepage environment that is team-oriented.
