The management team is at the core of the corporation. It is responsible for conducting the day-to-day operations of the corporation. The management team consists of the workers, supervisors, managers, and chief officers. When we talk about the management team of the corporation, we usually talk about the managers and the chief officers. It is because the managers and the chief officers are responsible and answerable to the higher authorities for the daily operations. The managers are responsible for managing the workforce and the operations of his/her department and are answerable to their chief officer. The chief officers are responsible for keeping a check on the operations of their departments and are answerable to the board of directors. There are many chief officers in a corporation, namely the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operations Officer (COO), and Chief Technology Officer (CTO), among many others.
For example, the manager of the finance department is supposed to look after the operations of the finance department and be answerable to the Chief Financial Officer. Then, the CFO reports to the CEO about the operations of the finance department. The CEO reports to the board of directors.
The Board of directors
The board of directors is the highest authority in the corporation after the shareholders. They are a group of people who are directly answerable to the shareholders of the corporation. They are responsible for the decision making of key areas of a corporation. They are to ensure that the corporation makes profits and the interests of the shareholders are protected. They do not look after the day-to-day operations but handle the bigger picture of the organization. They are responsible for determining the short term and long-term objectives of the corporation. They are engage in strategic planning, which is meant for determining the strategies for the operations of the corporation. They take the decisions based on which the whole corporation works. They are responsible for major decisions about the audit of the operations, compensation to the workforce, and corporate governance, among others. In times of crisis, the board of directors is to address the shareholders directly. They are to maintain complete transparency with the shareholders about the operations of the corporation. Upon failing to do so, the board and the corporation could face serious consequences. The board is responsible for electing the people for the positions of chief officers, who will look after the day-to-day operations. So, the decisions of the board of directors impact the operations of the corporation by and large.
The shareholders are called the owners of the corporation. This is because they own the stocks of the corporation, which means that they have invested their money for the running of the corporation. So, the corporationâ€™s main objective is to work for the best interests of the shareholders, along with making the maximum possible profits. The shareholders, being the owners of the corporation, have certain rights provided to them. They have the right to elect the board of directors of the corporation. They have a say in the major decisions of the corporations, such as mergers and acquisitions. The shareholders have the right to ask for and inspect the financial statements of the corporation. They have a right to sue the corporation for any wrongful acts legally. Every shareholder has the right to transfer his/her ownership by selling his/her share of the corporationâ€™s stocks to someone else. So, the owners of the corporation can change from time to time.
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