Having the right corporate management structure is critical to running a successful business. A business must decide the best structure to its goals and the industry. It should also evaluate its current structure and make any necessary adjustments. Any changes must be properly made clear to employees, especially when the company is real estate and data rooms how digitalization is evolving the market going through a restructuring. Otherwise, it can result in employee cynicism.
The top tier of a corporation consists of the board of directors and the executive officers, which includes the chief executive officer (CEO). The CEO is responsible for the daily operations of a company and has authority over most legal business operations. Shareholders are also a part in the corporate structure, but they are not involved in the day-to-day business. They are the ones who oversee budgets and are able to vote on major decisions.
Under the board of directors are the staff managers and work with top-level executives to implement policies. Staff managers can be divided into functional departments. This allows each department to function independently and increase efficiency. They could also be put into divisional departments which is ideal for companies with diverse 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 running vertically, it runs horizontally between departments. It is a good method to encourage communication and collaboration between departments. It can also create more trust among employees as well as foster a team-oriented culture.
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