Updated April 24, 2023
Introduction to Corporate Management
The aspect of management deals with all kinds of projects, the production function of the business, and the employees’ productivity. The Corporate Management of the business refers to the managers and executives that are the company’s primary leaders. The extent of the managerial roles can be found in various fields of the organization, such as the human resource department, the IT department, the legal department and the executive department, and so on.
The success of any business organization mainly depends upon the success of the Corporate management of the organization. The corporation usually refers to a large business organization with various departments and divisions for producing goods and services for the ultimate consumer. Hence, the organization’s management style also depends upon how large the organization is and the corporate culture prevalent in the organization.
For example, public companies usually have an elected board of members who further selects the management team to run the corporation’s various functions effectively and efficiently. This also means that the board of directors does not interfere with the day-to-day working of the organization and acts as an advisor to the selected team of managers because the interference may cause chaos in the organization and compromise the management’s working capacity the organization both.
It is often broken down according to the divisions or the function to be performed. Some of the most common corporate management positions the organization holds are the president, vice president, chief operating officer, chief executive officer, chief financial officer, and chief information officer. The various management positions are given a specific staff to handle, which handles some tasks given to her division. The corporation’s management structure can often be designed into a chart so that the organization’s employees can best inform and understand the structure.
The decision-making process can also be divided into two kinds, one being the centralized decision-making process in which the decision is made by the top-level management only, and the lower-level management has no say whatsoever in the decision-making process. The second kind of decision-making process is the decentralized form of decision-making in which the lower-level management makes most of the decisions and has a greater say in the overall decision-making process of the organization.
Sometimes the companies may even hire expert professionals to define their management style. This is important because the individuals can give a better insight into the company and provide an unbiased and objectified view of the position of the company and hence advise them with the most suitable management style. Also, due to the emergence of the corporate world on such a large scale in recent times and the stiff competition prevalent in the marketplace, it is important for organizations to have a well-working management style. Good corporate management helps better manage the organization and, in turn, results in the organization’s success.
Top 10 Rules of Corporate Management
But just good Corporate Management will not make sure whether the company is a success. It is important for the company to ensure that the management style is equally successful. Hence to make sure that the Corporate Management style is a success, the organization needs to follow some definitive rules as discussed below:
The main objective of Corporate Management is to efficiently and effectively utilize the resources that the management has in hand. The resources include the staff appointed, the technology used in the organization, and the equipment put to work. Efficient and effective management of the resource would include the minimization of production time and enhancing the productivity of the company so as to be able to increase the profits of the organization. It is also important for efficient corporate leadership to efficiently utilize the available resources in hand, whether scarce or abundant and to work accordingly.
2. Policy formulation
The corporate management is also responsible for formulating a stringent policy to make the employees follow them to the ‘T’. Still, it should be flexible enough to change according to the changing work environment. Also, the policies formed by the corporate management should follow the various rules and guidelines set for the industry. The policy formed should be able to bring together the various departments and branches of the organization and make them work towards one unified goal.
The various corporate heads of the various divisions and departments also have the important task of catering to their department’s financial needs, keeping in mind the company’s overall financial position. One of the many functions of the corporate head is to define the budget for the company as a whole or the department that they are heading and spend accordingly. For example, the HR manager would be working towards providing the maximum salary to the employees working under him or in the organization while keeping in mind the efficiency of the employee and the amount of money that the company is able to spend. Hence the budgetary function of the manager can be very tasking and important as well. Because if the corporate budget management prepared is not in accordance with the company, then it can affect the company adversely.
Coordination between the various divisions of the organization through various communications, meetings, and an organized line of passing the information results in the coordination of the organization as a whole and helps the managers fulfill various goals and objectives of the organization. It also helps coordinate the sales and production levels so that the demand for the product is met with the supply from the company. Also, the advertising campaign should be undertaken after proper coordination with the finance department so that there is no overspending on the advertising, hence putting the company in a fix or underspending and not being able to reach the customers properly.
The managers also need to maintain proper control over the workings of the organization through proper reviews and reports and proper feedback from the employees of the organization. The company’s reporting structure often gives insight to the managers about the strengths and weaknesses of the organization and hence results in the proper redressal of any kind, if required. The control exercised by the managers also helps ensure that the employees do all they can to fulfill the business objectives and goals and work according to the business plans formed.
The staffing function performed by the manager is very crucial as they have to ensure that the employees appointed for the job are suitable for the job academically and intellectually. Also, they have to ensure that the appointed employees have the right set of mind to work towards completing the organizational goals. They have to make sure that the organization’s staff is competent enough to combat various situations that may arise while completing the organization’s goals and objectives.
A key feature in the success of any organization is a good communication network between the employees and between the employees and the managers. Hence a part of the many duties to be performed by the manager is to ensure that there is a proper communication system in the organization where the employees can put in their suggestions on various aspects of the organization and can also put across their grievances and seek proper redressal for the same. A good communication network can do wonders for the organization’s success as the employees would be more satisfied. Also, the managers will learn about any shortcomings of the organization and take timely actions necessary to combat that.
8. Performance appraisal
Performance appraisal done by managers for their employees is an important tool in any organization. The performance appraisal conducted by the managers not only helps the managers in defining the level of enthusiasm in the employees and define how well they are working towards the fulfillment of the organizational goals, but it also helps the employees and keeps them motivated in working towards the fulfillment of the desired goals with much more zeal and enthusiasm. Performance appraisal done by the managers is also important for the organization and its success because, with the various appraisal techniques, the managers can estimate the level of goal fulfillment and how much work has been done by the employees. Also, this helps the manager identify the under-working employees and take corrective actions against them so that they can do a better job at the goal fulfillment of the organization.
9. Training and development of staff
The manager is responsible for ensuring proper training to achieve organizational success. Training and developing staff are crucial for recruits to understand the company’s rules and fulfill objectives. Existing employees also need training on new working methods and changes to ensure harmony.
10. Technological development
Due to the changing technological times and the emergence of new technology, it is important for managers to make sure that the technology they use in their organization is not obsolete. Using obsolete technology will not only make working slow and inefficient but will also threaten the success of the organization and management’s success. Hence it is important for any organization to keep their technology and staff updated on the technology. This is also the job of a manager. In many large-scale organizations, this job of keeping the technology up to date might be specialized to the company’s IT department, but to inform the department of obsolete technology or inefficient technology is the manager’s job. It is important that the employees can work efficiently and their work is not affected. But in small-scale companies, this task of changing the technology is not specialized to a specific department but is done by the head managers.
Managers do not have just one function to perform but have several other functions that need to be performed by the manager for the smooth working of the organization. So the success of corporate management depends on various different factors. And none of the factors can be undermined or given any less important in the whole working of the organization. Hence for any manager, it is important first to understand the roles and responsibilities of the manager and understand the implications of not stepping up to the opportunity. Hence, A manager’s success is as important as the organization’s success.
This has been a guide to Successful Corporate Management. Here we have discussed the basic concept with the top 10 effective ways to achieve successful corporate management. You can also go through our other suggested articles to learn more –