Corporationsare large companies that have several specialized divisions ordepartments that either produce goods or services for their targetcustomers (Dowling 23). The protocol of business management is “thedriving force behind the execution of company projects, productionprocesses, and employee management” (23). Corporate management is aterm loosely referring to all the top levels of managerial executivesin a business that is incorporated (Hilb 112). These clusters ofmanagers operate at corporate headquarters as the principal leadersof business activities in a company (112). The most common corporatemanagement positions include (but not limited to): the chiefexecutive officer, chief of legal affairs, director of information,president, vice president, chief operating officer, or chieffinancial officer (114). Each corporate officer has a management teamthat handles all the job related tasks in their specialized divisionsof the company. Listed corporations often have a board of directorsthat acts as business advisers to corporate management bycontributing to the process of making crucial decisions that affectthe trading activities of a company (Dowling 25).
Sincecompanies are comprised of several autonomous departments, corporatemanagement is usually built along the lines of the functionaldivisions of a corporation (27). As a result, corporations oftengenerate an organizational chart that highlights the overallmanagement structure of a company, to inform the employees on theappropriate scalar chains of control (Hilb 115). For instance, thehuman resource, marketing, and finance departments of company X havecorporate executives that manage their respective departments.Company X’s organizational chart can illustrate how all thecorporate executives in all the different departments areinterconnected to create synergy that drives business relatedinformation towards the chief executive officer or managing directorof the company (top level managers).
Sowhat are the basic responsibilities of corporate management?Expounding on the previous clarification of corporate management, itcan be further explained as the process of administrating, leading,and directing a company which include the management and allocationof company resources like equipment, human resource, and technology(Mergent). An effective corporate manager is one that successfullymanages all the resources of a company in a fashion that reducesproduction downtime, increases productivity, and in the long run,increases revenues (Hilb, 115). What’s more, corporate managementis tasked with the responsibility of formulating and implementingpolicies that are aimed at producing synergy that helps unify all thevarious functional divisions of a corporation towards achievingcompany objectives (Samson). For instance, company X needs policiesto guide its standard business practices. The corporate executives ofcompany X will formulate appropriate policies that will unify all theindependent functional divisions or units of the company.
Additionally,corporate management is tasked with the responsibility of generatingfinancial projections of a company by establishing spending budgetaryguidelines (Mergent). For instance, the corporate manager for thedivision of human resource for company X will cater to the budgetaryneeds of his department with regard to wages, salaries, and benefits.Similarly, the corporate manager for the finance department ofcompany X will cater to the budgetary needs of his department withrespect to calculating business ratios, approving financial budgets,and drafting financial forecasts on behalf of the company. To thiseffect, all the corporate managers of each department of a companyhave the responsibility to financially plan for and balance all thefinancial needs of their respective departments within tolerablecompany limits (Mergent).
Moreover,corporate managers are responsible for coordinating businessprocesses in their departments (Samson). Corporate managers aretasked with the duty of establishing and upholding coordination intheir divisions through vehicles like meetings or other appropriateframeworks of communication (Mergent). An effective corporate manageris one that has all the business-related activities coordinated in amanner that they provide competitive advantage to their corporation.This concept of coordination is closely linked to that ofcontrolling, which is yet another important function of corporatemanagers. Corporate managers can exert effective control over theirdepartments through feedbacks, reviews, and reports (Samson).
Usingfeedbacks and reports, a corporate manager can gain knowledge on abusiness process that can potentially do better after analyzingfeedback information regarding the strengths and weaknesses ofdifferent business protocols (Mergent). In response, a corporatemanager can dictate new business plans for their employees to adhereto, expecting that there will be substantial improvement in businessefficiency (Mergent). Evidently, all the roles of a corporate managerrest on the fact that they are the major decision makers in acompany. Being the departmental leaders, corporate managers are incharge of dictating all the policy requirements that employees intheir division mush adhere to which basically implies that they arethe main role of corporate managers is to make pertinent businessdecisions (Mergent).
Soexactly how do corporate managers arrive at business decisions? Thereare two styles of corporate decision making in corporate management:decentralized and centralized styles (Samson). In a decentralizedsystem, a corporate manager delegates the process of decision makingto the departmental unit managers (Samson). This style of corporatemanagement decision making is easy and less time consuming, but oftenleads to not-the-bestdecisions since the departmental managers are not as qualified astop-level corporate managers (Mergent). On the contrary, acentralized system of decision making is where lower-level employeeschannel information up the scalar chain of command for top-levelmanagers to use the information to make corporate decisions (Samson).This style of corporate management decision making process cansometimes be time consuming, but often leads to better decisionsbecause it is the most educated top level corporate managers thatmake the final decisions after analyzing collected data (Mergent).
Managementstyles are very important in any corporate management process becausein companies, business decisions are arrived at every day. Therefore,having an inappropriate decision making style might negatively affecta corporation in the sense that the poor decisions arrived at willnot serve the best interests of the company (Samson). Nonetheless,many corporate managers employ the centralized style of decisionmaking because it enables the business operations in a corporation toflow smoothly by eliminating ambiguity like in the scenario whereevery department develops its own set of operating protocols(Mergent). Decentralized systems often hurt the business because manyindividuals in a company have decision making responsibilities, whichfurther complicate the process of corporate decision making(Mergent).
Corporatemanagers are often graduates of corporate management courses wherethey are taught skills on the different functional areas of a companylike (but not limited to): strategic planning, financial management,strategic management, marketing management, logistics, qualitymanagement, human resource management, and manufacturing management(Samson). The knowledge acquired during studies enables the graduatesto solve problems in a corporate setting, which include (but notlimited to): implementing new management systems, restructuring ofcorporations, entrepreneurship and globalization, product marketing,information management systems, and economy transformation (Samson).Armed with this knowledge, corporate managers can lead, administer,and direct a company towards a course that certainly providescorporate advantage to their businesses.
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Hilb,Martin. "New Corporate Governance." Managementfor Professionals(2016): 112-21. Web. 8 Nov. 2016.
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Samson,Danny, and Richard L. Daft. Management.South Melbourne, Vic.: Cengage Learning, 2015. Print.