The corporate structure is an organizational chart that includes the job titles and reporting relationships. It’s the chart that a company creates to define accountability and responsibilities. It is an essential part of any business – no matter if it’s a small startup or a major global company and is crucial in assisting businesses to expand. It facilitates communication and clarity regarding the company’s goals and the chain of command. Without a well-organized corporate management structure, companies can become confused and disorganized.
Shareholders are those who own shares in an organization and have the right to vote on the major business decisions. They are also able to decide to withdraw their support of the company if dissatisfied with its policies.
Directors are elected by shareholders to oversee the operations of a company. They make decisions regarding setting operating policies as well as expanding the business and making financial decisions. They also have the power to fire and recruit management. Directors are responsible for ensuring that the interests of shareholders are considered when making decisions.
Managers are accountable for the day-today operations of an organization, as well as achieving goals set by the board. They are also accountable for keeping the board informed of the progress of operations as well as any risk.
The matrix structure is similar to the traditional line structure, however, it is a team structure which are organized around markets or products instead of job functions. This kind of structure is useful for companies that operate in different industries and regions however, it can be difficult to grow.