Corporate Management Structure
A proper corporate management structure will help you run your business more efficiently. A company should consider the best structure that is suited to its business goals and the industry. It should also review its structure and make any necessary adjustments. All changes must be communicated to employees, particularly when the company is going through changes in its structure. If not, it could result in employee cynicism.
The top level of a business is made up of the board of directors and the executive officers, which includes the chief executive officer (CEO). The CEO is the person who oversees business operations and is able to exercise control over virtually all legal business operations. Shareholders are also a part in the corporate structure, though they are not involved in the day-today business. They are responsible for budgets and have the right to vote on major decisions.
Below the board of directors are staff managers who collaborate with the higher-level executives to implement policies. Staff managers can be organized into functional departments. This allows each department to operate independently and to maximize efficiency. They can also be divided into divisional departments which is a great option for companies with a variety of product lines, and requires quick response times to market shifts.
A circular structure is similar to the functional and divisional structure however, instead of having the chain of command run vertically, it runs horizontally between departments. It is a great method to encourage communication and collaboration within departments. It can also create the spirit of teamwork and trust among employees.