The right corporate management structure will allow you to manage your business effectively. A business must decide the best structure to its goals and the industry. Also, it should evaluate the structure it has in place and make any necessary changes. Any changes must be properly communicated to employees, particularly in the event that the company is going through a restructuring. In the wrong circumstances, it could cause a sense of cynicism among employees.
The top tier in an organization is made up of corporate management structure the executive officers and board members including the chief executive (CEO). The CEO is responsible for the day-to-day operations of a company and has the authority to oversee all legal business operations. Shareholders are also a part in the corporate structure, even though they are not directly 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 the staff managers and work with top-level executives to implement policy. Staff managers can be divided into functional departments. This allows each department to function independently and to maximize efficiency. They can also be divided into divisional departments which is ideal for businesses with multiple product lines, and requires 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 way to promote collaboration and communication among departments. It also helps to build trust among employees and help to create an atmosphere of teamwork.