A well-designed corporate management structure is essential to efficient business operations. A company must determine the type of structure that best is suited to its business goals and industry. It is also necessary to evaluate the structure it has in place and make any necessary adjustments. Any changes should be carefully communicated to employees, particularly in the event that the company is going through a restructuring. Otherwise, it can cause a sense of cynicism among employees.

The top level of a company is comprised of the board and executive officers including the chief executive (CEO). The CEO is responsible for the daily operations of a company and is in charge of the majority of legal business activities. The shareholders are also a part in the corporate structure, even while they’re not involved in the day-to-day operations. They are responsible for budgets and are able to vote on major decisions.

Staff managers are under the director’s board. They work with executives at higher levels to establish policies. Staff managers can be organized into functional departments, which permits each department to function independently and optimizes efficiency for a specific business function. They can also be placed in divisional departments. This is ideal for businesses that have a variety of product lines and must respond quickly to market changes.

A circular structure is similar to a functional or divisional structure. However instead of a chain of command running vertically, this structure is visualizing acquisition processes run horizontally across departments. It’s a great way to foster collaboration and communication between departments. It can also increase trust among employees and foster an atmosphere of teamwork.