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Corporate structure is the organizational chart of job titles and reporting relationships that a company develops to define accountability and responsibility. It’s a crucial element of every company, no matter if it’s a startup or large global enterprise, and plays a crucial role in helping businesses expand. It facilitates communication and understanding of the company’s objectives and the chain of command. Without a well-designed corporate management structure, organizations can be disorganized and confused.
Shareholders have ownership of shares in the company, and they have the right to vote on important business decisions. They can also take their support off when they are dissatisfied by the direction of a company.
Directors are elected by shareholders to oversee the operations of a company. They make decisions regarding setting operating policies in addition to expanding the business and authorizing financial decisions. They can also fire or hire management. Directors are responsible to ensure that the interests of shareholders are considered when making decisions.
Managers manage the day-to-day operations of a company and meet the objectives set by the board of directors. They’re also responsible for keeping the board informed about the current status of operations and any risks.
The matrix structure is similar to the traditional line structure, but is based on teams that are organized around products or markets instead of job roles. This type of structure is beneficial to companies that operate across multiple industries and regions to avoid duplicate work, however it can be difficult to grow.
