The right corporate management structure will help you manage your business efficiently. A company must determine which structure is most suitable to its objectives and industry. It is also necessary to evaluate its existing structure and make any necessary adjustments. Any changes should be carefully communicated to employees, especially if the company is going redefining marketplaces with peer-to-peer technologies through a reorganization. Otherwise, it can result in employee cynicism.

The top tier of a corporation consists of the board of directors as well as the executive officers, including the chief executive officer (CEO). The CEO oversees daily business operations and has control over nearly all business activities. The shareholders also play an important part in the corporate structure even although they aren’t directly involved in the day-to-day operations. They are accountable for budgets and have the right to vote on major decisions.

Staff managers are under the directors’ board. They collaborate with executives at higher levels to implement policies. Staff managers are organized into functional departments. This allows each department to operate independently and increase efficiency. They can also be organized in divisional departments. This is ideal for companies that have a variety of product lines and need to react quickly to market changes.

A circular structure is similar in concept to a divisional or functional structure. However instead of the chain of command running vertically, this structure functions horizontally across departments. It’s a great way to foster collaboration and communication within departments. It can also help build trust among employees and help to create an atmosphere of teamwork.