The corporate structure is an organizational chart that includes job titles and reporting relationships. It's what a business creates to define accountability and responsibility. It is an essential component of any business – no redefining marketplaces with peer-to-peer technologies matter if it's a small startup or a global giant and is essential in helping businesses grow. It improves communication and clarifies the objectives of a company and its hierarchy of command. The company can be disorganized and confused if they don't have a well-designed management structure.
Shareholders own stock in the corporate structure, and have the right to vote on major business decisions. They may also remove their support from the company if they are not happy with its direction.
Directors are elected by shareholders to supervise the business operations of a company. They make decisions about setting operational policies, expanding the business and taking financial decisions. They also have the power to fire or hire management. Directors are accountable for making sure that shareholders' interests are considered in the decision-making process.
Managers are accountable for the day-today operations an organization, and for achieving the goals set by the board. They're also responsible for keeping the board informed about the state of operations and any risk.
The matrix structure is similar in concept to the traditional line structure, but involves teams based around markets or products instead of job functions. This kind of structure is ideal for businesses that operate in various industries and regions however it can be challenging to grow.