Corporation can have various types of organizational chart but in general, it is comprised of four elements: board of directors, officers, employees, and shareholders or owners. There is no imposed restriction on the position and a worker can be an employee as well as the role of officer, board of director, shareholder or owner simultaneously. Even so, the role and function of each is quite different.
Board of Directors’ Role in Corporate Organizational Chart
Board of Directors can be one person or many selected by shareholders to prevent the company from liability and maximize the profit on investment via properly setting mission and plan. Board of Directors does not get involved in the daily operation of company but the whole situation where company is going. They are required to demonstrate success and progress of the company with annual or quarterly reports. Sometimes, Board of Directors is expected to create or revise the company rules so as to regulate the company.
Officers’ Role in Corporate Organizational Chart
Officers are defined as President or CEO, Vice-Presidents, the Treasurer and the Secretary which are appointed by Board of Directors and asked to report to Board of Directors. These people are responsible for management of daily operation of the corporation to achieve profit maximization.
Ordinal Employee’s Role in Corporate Organizational Chart
Ordinal employees are required to report to officers and do specific tasks as officers’ command.
Shareholders’ or Owners’ Role in Corporate Organizational Chart
Shareholders own the corporation partly. They do not take part in daily management and operation of the company but are responsible for voting for corporation’s long-term plan and big events, critical decision-making including appointment or removal of officers, company law amending, major company changes (mergers, acquisition, sales) and disposition of corporation assets.