The business hierarchy that is the signature of the American Corporate Companies is one of the most successful models in the world, and many underdeveloped countries follow their example in their own companies to achieve success. There are two aims behind this kind of a structure, one to achieve their goals, and two, to provide support to each and every person involved in the organization. In the governance of an American company, designations, duties and responsibilities are chalked out quite clearly. There are some typical designations in the business hierarchy of any American corporate, such as, Managing Director, Chief executive Officer, Board of Directors, General Managers, etc.
The American corporate hierarchy is explained below.
- Managing Director- Generally the managing director of a company is either the founder of the organization or the successor of the founder. The duty of the managing director is to supervise over the acts of the company and provide leadership and guidance to the employees of the company.
- Board of Directors- The board of directors is sub ordinate to the managing director of the organization. It is the managing director who divides the responsibilities among the members of the board of directors. The CEO is answerable to the board of directors. They are either elected or nominated by the shareholders of the company. There are two types of individuals in a board. 1. Who are chosen internally from the company, 2. Who are selected from outside, and are thus considered as independent from the company. The board should act as an advocate of the shareholders and monitor the management of the company. They must ensure that the interests of the shareholders are protected.
- Chief Executive officer- It is ultimately the duty of the chief executive officer to ensure the success of a company. All the employees save the board of director are accountable to the chief executive officer. He or she occupies the second most important individual position on the company’s hierarchical scale. It is his or her duty to implement the decisions taken by the managing director and the board of directors, and also to enhance the overall performance of the company. He or she also needs to develop the strategy of the organization.
- General managers- Below the chief executive officer is the general managers of the company. They have to assist both the board of directors and the stuff of the company. They are given the authority to execute such policies that earn more revenues and reduce costs at various steps. They plan, co ordinate, and organize in order to achieve the targets of the companies.
- Mangers- Under the general managers are the managers of the company, who are given duties to manage separate departments. The mangers’ job is to create goals, make favorable atmosphere to achieve them, hire, and even fire individuals.
- Stuff- At the lowest level of the hierarchy stood the employees or stuffs. They belong to several departments, and report to the managers over them directly. Skilful and dedicated stuff are important for any company.
This is the structure of hierarchy of the US corporate companies.