Company Management - Roles & Structures

Company Management is done by the administration of an organization that includes the activities of setting the strategy of an organization and coordinating the efforts of its employees.

Updated: May 31, 2024

Company Management - Roles & Structures



Company Management:

Company Management is done by the administration of an organization that includes the activities of setting the strategy of an organization and coordinating the efforts of its employees. The application of available resources, such as financial, natural, technological, and human resources are responsible  to accomplish the objectives of an organization. Various stakeholders like directors, officers, managers and shareholders of a company provide guidance towards the achievement of its business objectives. All of these have different roles and responsibilities to support the management system of a company.


Role of Shareholders:

The shareholders holds the shares of a company to get a share in the profits. They have the rights to elect the director of a company. Generally, the non-executive directors are not directly involved in the everyday company management but gives their valuable advice and suggestion to the company. Executive directors are involved in regular decision making in the business.

Role of Directors:

A board of directors will be selected by the shareholder to represent the interests of a company. There can be a minimum of three directors in the case of a Limited Company, two directors in the case of a Private Limited Company and one director in the case of a One Person Company. There will be a Managing Director who has general responsibility for managing the affairs of a company and select and employ senior managers or officers related to the domain of company management with the help and assistance from other directors.

Role of Officers:

The roles of various officers within a company are as below:
  • The Board to Directors selects Officers of a company to hold various top level roles and responsibilities within the company. A Chief Executive Officer or CEO is the top ranking person in a company who is responsible for taking all managerial decisions for the day to day operation of the company.
  • The Chief Operating Officer or COO is a senior executive who reports to the CEO and oversees ongoing business operations within the company.
  • The Chief financial officer or CFO is responsibility for the financial affairs of a company such as planning, bookkeeping, budgeting, accounting, setting up of internal controls, fund raising and other accounting/financial matters.
  • The Chief Technology Officer or CTO oversees current technology development and maintenance aspects such as aligning of technology-related decisions with the goals of company, maintaining technology assets managing technology development and create technology policies.
  • The Chief Marketing Officer or CMO works directly with sales, marketing, and development departments to increase revenue, improve brand image and manage marketing campaigns. CMO integrate marketing strategies in all divisions of the company.
  • The Chief Legal Officer or CLO helps the company reduce its legal risks by advising the company and its employees or stakeholders on major legal and regulatory issues the company confronts and manage litigation risks.

Role of Managers:

There can be different managers for different department of a company who reports to the President or Senior Managers within the division. An Accounts Manager is responsible for maintenance of books and accounts of the company where as a Recruitment Manager is responsible in Recruiting employees for the company and setting up of interviews. Technology Manager is responsible for Development of a product or service and Store Manager maintain the stocks of the company. A Regional Managers is required in case of a company operating on a regional basis. A Functional Managers manages human resources, finance, sales, etc., where as Departmental Managers manages retail, B2B, online. General Managers are responsible for hiring a general manager to whom functional managers report.

Resources Management:

Various managers of the company are responsible for management of the resources of a company. These include:
  • The People resources directs the company activities and take care of the employees.
  • The Financial resources utilizes the financial resources of the company to achieve profit and sales targets.
  • The Material resources ensures the material is utilized in the most dynamic way with minimal wastage.
  • The Machinery and Equipment resources ensures the utilization of suitable machinery and equipment and also responsible for maintaining, replacing and updating it where ever essential.
  • The Buildings resources ensures that the premises of the company are safe and are being utilized properly.
  • The Technology resources ensures the utilization of the information technologies of the company in the most efficient way.