Corporate Management Structure

A well-designed corporate management structure is essential for efficient business operations. A company should determine the best structure that fits its goals and industry. It should also examine its current structure and make any necessary adjustments. All changes should be communicated to employees, particularly when the company is going through changes in its structure. It could cause a sense of discontent among 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 the person who oversees business operations and has control over virtually all lawful business activities. Shareholders are also a part in the corporate structure, but they are not directly involved in day-to-day business. They are responsible for budgets and vote on major decisions.

Below the board of directors are staff managers and work with top-level executives to implement policy. Staff managers can be organized into functional departments. This allows each department to operate independently and increase efficiency. They can also be organized into divisional departments which is ideal for companies with diverse product lines and needs quick response times to market shifts.

A circular structure is spearheading growth with holistic digital strategies similar to a functional and divisional structure but instead of having the chain of command running vertically, it is run horizontally between departments. It is a great way to improve communication and collaboration between departments. It can also help to build an environment of teamwork and trust among employees.