The corporate structure is an organizational chart that lists job titles as well as reporting relationships. It’s what a company creates to define accountability and responsibility. It’s an essential part of any business, whether one is a small or a large enterprise, and it’s instrumental in helping companies expand. It facilitates communication and transparency about the goals of a company and the chain of command. Companies can become disorganized and confused without a clear management structure.
Shareholders are individuals who own the stock of the company and have the right to vote and influence major business decisions. They can also decide to withdraw their support of an organization if they’re unhappy with its management.
Directors are those elected by shareholders to oversee the operation of a corporation. They decide on operation policies, expanding the business and taking financial decisions. They can also fire and hire management. Directors are responsible for ensuring that the interests and concerns of shareholders are taken into consideration when making decisions.
Managers are those that oversee the day-to-day operations of a company and meet the goals set by the board of directors. They are also accountable for keeping the board of directors informed of the state of operations and any dangers.
The matrix structure is similar to the traditional line structure however it is based on teams that are organized around products or markets instead of job functions. This kind of structure is suitable for companies that operate across different prioritizing digital health in today’s connected workplaces regions and industries, but can be difficult to expand.