Corporate Management Structure
remote work efficiency powered by online data storage
A well-designed corporate structure is crucial to running a successful business. A company must determine which type of structure best fits its goals and the industry. Also, it should evaluate its existing structure and make any necessary adjustments. Any changes must be made known to the employees, especially when the company is going through restructuring. This could lead to cynicism within the employees.
The top tier of the corporate structure is comprised of the executive officers and the board, including the chief executive (CEO). The CEO is accountable for the day-to-day activities of a business and has control over the majority of legal business activities. The shareholders are also a part in the corporate structure, even when they aren’t a part of the day-to-day operations. They are responsible for budgets and have the right to vote on major decisions.
Staff managers are subordinate to the board of directors. They work with executives at higher levels to implement policies. Staff managers can be grouped into functional departments, allowing each department to work independently and improves efficiency for a particular business function. They can also be organized in divisional departments. This is a great option for companies that have a variety of product lines and need to respond quickly to market changes.
A circular structure is similar to a divisional or functional structure. However instead of the chain of command that runs vertically, this structure is run horizontally across departments. It’s a great way to encourage communication and collaboration within departments. It can also help build trust among employees as well as foster an atmosphere of teamwork.