Corporate Management Structure

A proper corporate management structure can help you run your business more efficiently. A business must decide the best structure to its business goals and industry. It must also assess its current structure and make any needed adjustments. Changes should be communicated to employees, particularly when the company is going through changes in its structure. It could cause a sense of discontent within the employees.

The top tier of the corporate structure is comprised of the board and executive officers including the chief executive (CEO). The CEO is accountable for the daily operations of a company and is in charge of the majority of legal business operations. Shareholders play a significant role in the corporate structure, but they are not involved in day-today business. They are in charge of budgets and are able to vote on major decisions.

Staff managers are subordinate to the board of directors. They collaborate with executives at higher levels to implement policies. Staff managers are grouped into functional departments, allowing each department to function independently and improves efficiency for a particular business function. They can also be digital restructuring in corporations divided into divisional departments, which is ideal for companies with a variety of product lines and requires fast responses to market shifts.

A circular structure is similar to the functional and divisional structures however instead of having the chain of command run vertically, it is run horizontally between departments. It is a great method to encourage collaboration and communication within departments. It also helps to create an environment of teamwork and trust among employees.

Written by Roberto Contreras