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Corporate Management Structure

A proper corporate management structure will help you manage your business efficiently. A business must decide the best structure to its objectives and industry. It should also evaluate its current structure and make any necessary changes. All changes should be communicated to employees, particularly when the company is undergoing an organizational change. This could lead to cynicism among employees.

The top tier in a company is comprised of the executive officers and the board including the chief executive (CEO). The CEO is responsible for the day-to-day business operations and has control over virtually all legal business activities. Shareholders also play a role in the corporate structure, though they are not involved in the day-today business. They are responsible for budgets and are able to vote on major decisions.

Staff managers are below the directors’ board. They work with executives at higher levels to implement policies. Staff managers are grouped into functional departments, which permits each department to operate independently and maximize efficiency for a particular business function. They can also be divided into divisional departments which is a great option for companies with diverse product lines and needs quick responses to market changes.

A circular structure is similar to an organizational and divisional structure but instead of having the chain of command running vertically, it runs horizontally between departments. It’s a great strategy to encourage communication and collaboration within departments. It also helps to create the culture of teamwork as well as trust among employees.

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