The Importance of Corporate Management Structure
prioritizing digital health in today’s connected workplaces
The corporate structure is an organizational chart which includes the job titles and reporting relationships. It’s the chart that a company creates to define accountability and responsibilities. It’s a crucial element of any business – no matter if it’s a small start-up or a large global enterprise – and is instrumental in helping businesses to grow. It helps to communicate and provides understanding of the company’s objectives and the chain of command. Without a well-designed corporate management structure, businesses can be disorganized and confused.
Shareholders own stock in the company, and they are entitled to vote on important business decisions. They can also take their support off when they are unhappy with the direction taken by a company.
Directors are the individuals chosen by shareholders to oversee the operations of a company. They decide on operation policies and expand the business and make financial decisions. In addition, they can also hire and fire management. Directors are accountable to ensure that the needs and concerns of shareholders are considered when making decisions.
Managers are accountable for the day-today operations of an organization and achieving the goals set by the board. They are also responsible for keeping their board of directors updated about the current status of the company, as well as any potential risks.
The matrix structure is similar in concept to the traditional line structure, but involves teams organized around products or markets rather than job functions. This kind of structure can aid companies that operate across multiple sectors and regions to avoid duplicate work, however it can be difficult to increase the size of the business.
