In any organization, there is always a structure of how each member relates to the other. Business leaders are well aware of standard organizational structures but are still at risk of mismanaging a company. This is where the importance of corporate management comes in. Knowing the structure is one thing; effectively managing it is a whole other story.
Corporate Management structure is important to the survival of any organization. Without it, there would be no company at all. However, having a structure is not enough. Leaders must also ensure that it is organized, effective, and easily understandable by all the stakeholders. Most people would call this hierarchy of power and in sense, it is both true and a myth.
Business Roles in a Corporate Office
As stated above, corporate management is made up of different members with specific functions in the company. Understanding a traditional corporate model would give you a clear understanding of the business roles of each member of the organization.
Rank and File – This role level comprises the operations, officers, assistants, and team members. Analyzing this level would show you the granular details of how the business functions. Employees at this level are essential to the operation of the whole company but are the easiest to replace.
Team Leaders – Experienced employees with deep knowledge of their functions are often tasked to be team leaders. They are specialists for multiple specific functions and handle a small team of rank and file employees. It usually requires a few years of experience to be a team leader which is why they are hard to replace.
Decision Support – This level is composed of Managers that handle a specific department of the organization. They review and evaluate data which they use to formulate suggestions for the business’s wellbeing. People at this level must have subject matter expertise, leadership skills, and communication skills to be successful.
Decision Makers – Leaders with a high level of command belong to this group. They are usually VPs, Executives, COOs, CFO, and other C-level Officers. They choose and implement general decisions that affect the operations of the whole company. The skills of these people have been tried and tested which is why it’s really hard to replace people of this level.
Top Level Management – The only C-level officer that is considered in the Top Level Management (TLM) is the CEO. In this level, you’ll find the president (if it’s a separate entity from the CEO), and the Board of Directors (BOD). They control what happens inside the corporation which means they make the biggest decisions. Oftentimes, when a position in this level becomes vacant, it takes just a short while before it’s filled. This is because corporations usually have a contingency plan among their top members.
- What is office management?
- Office management is the efficient and effective coordination of office activities. This is often designed by the decision makers and revised as needed. It adapts to the trends and best practices to ensure a competitive edge and growth.
- CEO V.S. COO
- The Chief Executive Officer is the highest ranking officer in the company. He/she ensures that the whole company is moving towards its goals. The Chief Operations Officer is next in line to the CEO. He/she oversees the operations of the whole company and ensures that the business roles in the company are properly implemented and are effective. To put it in simpler terms, the COO reports to the COO.
- Who is the most powerful person in a corporation?
- It may come to a surprise to you that the CEO is not the most powerful business role in a corporation. The Board of Directors hold the most power in a corporation although the decisions are harder to make because they must first reach a consensus among their peers.
What is the Best Corporate Management Structure?
Every corporate management structure has its pros and cons depending on the nature of the business. What makes it different is how each member of the organization connects to the other. Traditionally, the higher a person’s position in the company, the less they are able to interact with other members of the organization. However, the introduction of a more compassionate leadership style has introduced a more interactive structure.
This notion of “untouchable” has rapidly changed especially in innovative and start-up businesses. It’s been observed that an interactive work environment yields a more efficient use of resources, effective work delegation, and sustainable results.
The traditional corporate management structure might work for your company but you might also consider having a more holistic interactive approach to your business roles.