Corporate Management Structure

Vrijeme čitanja:1 min, 20 sec

The correct corporate structure will allow you to run your business more efficiently. A company should determine which type of structure best fits its goals and industry. It should also review its current structure and make any needed adjustments. Changes should be communicated to employees, particularly when the company is going through restructuring. Otherwise, it can result in employee cynicism.

The top tier of an organization is made up 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 power over virtually all lawful business operations. The shareholders are also a part in the corporate structure, even when they aren’t a part of the day-to-day business operations. They are in charge of budgets, and they can also vote on major decisions.

Below the board of directors are the staff managers who work with the top executives to enforce policy. Staff managers can be organized into functional departments, which enables departments to operate on their own and maximizes efficiency for a particular business function. They can also be organized in divisional departments. This is ideal for companies that have multiple products and need to adapt quickly to market trends.

A circular structure is similar in concept to a functional or divisional structure. However, instead of the chain of command that runs vertically, this structure functions horizontally across departments. It is an effective way to increase communication and collaboration between departments. It can also foster an environment of teamwork and trust among employees.

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