Corporate structure is the organizational chart of job titles and reporting relationships that a company creates to outline accountability and responsibility. It’s a necessary component of any company, whether a startup or large global enterprise, and is crucial in helping businesses grow. It allows for communication and understanding of the company’s objectives and the chain of command. Companies can become disorganized and confused without a solid management structure.
Shareholders own stock in the company, and they are entitled to vote on major business decisions. They can also take their support away from a company if they are dissatisfied with its policies.
Directors are chosen by shareholders to oversee the business operations of a company. They make decisions about setting operational policies, expanding the business and taking financial decisions. They can also sack or hire management. Directors are accountable for making sure that the interests of shareholders are considered in the decision-making process.
Managers are those that oversee the day-today activities of a company and are accountable for meeting the goals set by the board of directors. They are also accountable for keeping the board informed about the current status of operations and any dangers.
The matrix structure is similar to the traditional line structure, but is based on teams that are organized around markets or products instead of job roles. This kind of structure is beneficial to businesses that operate across different industries and regions to avoid duplicate work but it can be challenging to grow.
