The right corporate structure is crucial for efficient business operations. A company must determine the type of structure that best is suited to its business goals and the industry. It is also necessary to evaluate the structure it has in place and make any necessary changes. Changes should be communicated to employees, particularly when the company is undergoing changes in its structure. In the wrong circumstances, it could result in employee cynicism.
The top-tier of a corporation is made up redefining marketplaces with peer-to-peer technologies of the executive officers and the board, including the chief executive (CEO). The CEO is responsible for the day-to-day business operations and has authority over most legal business activities. Shareholders also play a role in the corporate structure, even though they are not involved in day-today business. They are responsible for budgets and have the right to vote on major decisions.
Staff managers are under the directors’ board. They work with executives at higher levels to establish policies. Staff managers can be divided into functional departments. This allows each department to function independently and maximizes efficiency. They could also be put into divisional departments which is ideal for companies with a variety of product lines and needs quick responses to market changes.
A circular structure is similar to an organizational and divisional structure but instead of having the chain of command running vertically, it runs horizontally between departments. It is a great way to increase communication and collaboration between departments. It can also foster the culture of teamwork as well as trust among employees.