Session 1
Corporate Structure
By professor Diana Evangelista
Contents!
I. Corporate structure
1.1 Organizational chart
1.2 Top executive career profile
1.3 Top operational career profiles
1.3.1 Skills
1.3.2 Responsabilities
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Corporate structure
Aligns the different units and departments.
Corporate structure
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“This structural classification
can be done based on work,
products, and product lines,
regions, etc. And this
structure may vary from
company to company, as per
the individual company’s
requirements. Also, it may
differ even between different
departments, units or offices
of the same company.”
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Types of Organizational Structure
▸ Functional Structure
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▸ Divisional structure
Structures are categorized based on region, a specific market
or product, or even a particular consumer base.
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▸ Matrix structure
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Hybrid structure
A hybrid structure, as the name suggests, is again a mix
of functional and divisional structures. The difference is
that unlike the matrix structure, different departments are
categorized as functional or divisional within the same
organization. Therefore, departments have the autonomy
to choose the kind of structure they want to adopt as per
their needs and requirements.
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Organizational chart
Diagram showing the relation of a company
Organizational chart
▸ An organizational chart shows the internal structure of an organization or company. The employees and
positions are represented by boxes or other shapes, sometimes including photos, contact information,
email and page links, icons and illustrations. Straight or elbowed lines link the levels together.
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Types of organizational chart
▸ Hierarchical Org Chart
A hierarchy is where one group or person is at the top, while those with less power are
beneath them, in the shape of a pyramid..
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In a hierarchical, vertical,
top-down organization, lines of
authority and communication
should be clear. In its purest
form, think of the military. In the
business world, think of the chief
executive and other C-suite
executives, working down to
perhaps directors, senior
managers, middle managers,
team leaders and team
members. If the strength of this
structure is clarity and stability,
the potential weakness is rigidity,
the inability to be flexible when
called for. The management
layers can sometimes bloat an
organization as well.
Types of organizational chart
▸ Matrix Org Chart
This is usually only seen when individuals have more than one manager.
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In a matrixed
organization,
cross-department
relationships may be
more fruitful and
cooperative.
However, having more
than one person or
department to answer
to can also create
confusing loyalties or
conflicts of interest for
employees.
Types of organizational chart
▸ Flat Org Chart or Horizontal Org Chart,
Has little or no levels of middle management and typically consists of two levels: the top
administrators and the workers. In companies like this, the workers have more responsibility
and are more directly involved in decision-making.
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In a flat, horizontal structure,
most layers of management
are cut out, with close
relationships between the top
and the employees. This is
common in smaller companies
and organizations, but it’s
generally not practical for
larger organizations.
Employees may feel a
stronger sense of teamwork
and autonomy, though
conflicts among employees
can become more
pronounced due to fewer
people doing the work.
Use of org charts
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You can use org charts for:
* Organizational and supervisory
communication
* Restructuring
* Workforce planning
* Resource planning
* Genealogy
Getting more visual with
organizational charts
Using photos
Using different shapes and/or colors
Using company logos or icons
Using animations in PowerPoint
Using 3D shapes
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Top executive profiles
Skills and responsabilities
Top executives devise
strategies and policies to
ensure that an organization
meets its goals. They plan,
direct, and coordinate
operational activities of
companies and organizations.
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Top executives typically do the following:
Duties •Establish and carry out departmental or organizational
goals, policies, and procedures.
•Direct and oversee an organization’s financial and
budgetary activities.
•Manage general activities related to making products
and providing services.
•Consult with other executives, staff, and board
members about general operations.
•Negotiate or approve contracts and agreements
•Appoint department heads and managers
•Analyze financial statements, sales reports, and other
performance indicators
•Identify places to cut costs and to improve
performance, policies, and programs
Skills
Training
At least a bachelor’s
degree and a
Education 1
considerable amount of
Master’s degree in
work experience.
business administration or
in an area related to their 2
field of work. Licenses,
Certifications, and Work experience
Registrations Management
3 occupations or
supervisory positions.
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Personality and interests
Communication & Time-management
leadership skills skills
Top executives must be
Able to communicate clearly and
able to do many tasks at
persuasively. They must
effectively discuss issues and
the same time, typically
negotiate with others, direct under their own direction,
subordinates, and explain their to ensure that their work
policies and decisions to those gets done and that they
within and outside the Decision-making, meet their goals.
organization.
solving-problem
They must assess different
options and choose the best
course of action, often daily.
Must be able to recognize
shortcomings and effectively
carry out solutions..
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Payment
In May 2019, the median annual wages for chief executives in the top industries
in which they worked were as follows:
Top industries Median annual wages
Professional, scientific, and
$208,000 or more
technical services
Manufacturing 208,000 or more
Healthcare and social
166,410
assistance
Sources: Occupational Outlook handbook 2021 https://www.bls.gov/ooh/
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Board of directors
We put ‘shareholders vs stakeholders’ as
‘owners vs any parties interested in the
company’. Note that shareholder is a
subset of stakeholders. A shareholder is
someone who owns a financial share
(equity stock) in the company and thus
has an ownership share in the company.
A stakeholder is someone who has an
interest in the company’s performance
for reasons other than just capital
appreciation due to an increase in the
stock price.
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Chairman
▸ Is the leader or top-most authority of the Board of Directors. The Board elects the
Chairman from its members. The Chairman can be from outside or inside or one of the
promoters.
▸ The Board of directors is responsible for the formation and implementation of business
strategy and representing the company to the shareholders and outside world.
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Management Team
After the Board of Directors comes the management team. It is responsible for the
everyday functioning of the company and maintaining its top and bottom line.
Chief Executive Officer (CEO)
A CEO is the head of the management team and reports directly to the Board of Directors. He is
responsible for the company’s operations and management.
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Management Team
Chief Operations Officer (COO)
After the CEO comes COO, who is responsible for managing daily operations of the company
like sales, marketing, production, etc. And he reports to the CEO generally.
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Management Team
Chief Financial Officer (CFO)
The CFO is directly responsible for the financial performance of the company. He is responsible
for making and implementing budgets across departments, reviewing their business
performance, and taking corrective measures when necessary.
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Thanks!
Any questions?
diana_evangelista@my.unitec.edu.mx
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▸ Sources
▸ https://efinancemanagement.com/fina
ncial-management/corporate-
structure
▸ https://www.lucidchart.com/pages/tu
torial/organizational-charts#section_1
▸ https://www.professionalacademy.co
m/blogs-and-advice/marketing-
theories---the-marketing-mix---
from-4-p-s-to-7-p-s
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