subject: Understanding The Corporate Management Ranks [print this page] Understanding The Corporate Management Ranks
Today the corporate world has certain ranks for their leaders. But in the present day scenario, these ranks have become bewildering to say the least for both those who work in the sector as well as for those outside. There are many ranks in corporate management that are referred to as the "C-Suite" which are for the leaders of the company. These ranks include the ranks of the CEO or the Chief Executive Officer, the COO or the Chief Operations Officer, the CFO or the Chief Finance Officer, the CIO or the Chief Information Officer, the CSO or the Chief Strategy Officer. The companies also have the rank of the Vice Presidents as well.In the modern world wherein the corporate landscape is constantly changing it is more and more difficult for a person to keep track of the various ranks, positions of the leaders within the business organization, their roles, their responsibilities as also their range of influence in the corporate set up.All corporate entities have a responsibility towards their shareholders and it is their duty to safeguard the shareholders' interest. To do so, many corporate houses and companies have set up a two-tier corporate hierarchy. The first level of this hierarchy is made up of a Board of Directors who is selected by the shareholders of the company. The second tier is made up of the executive management of the company who are either selected by the board of directors or by the CEO.The Board of Directors acts on behalf of the shareholders and monitors the working of the executive management of the corporate house. This body is further made up of two groups of people. The first group includes the executive directors who are from within the company and the second group includes members who are independent of the company.The board members are further divided into three categories. The Chairman of the Board is elected from among the board of directors. His responsibility includes ensuring that the board functions smoothly and effectively. He is the leader of the company. He maintains strong communication links with the CEO who reports to him directly. He is the face of the company in public and during shareholders meetings.The high-level budgets that are prepared by the senior level management leaders have to be approved by the executive directors. They help to provide an internal perspective of the company to the other board members. The non-executive directors have similar responsibilities as the executive directors when it comes to determining company policies. But the difference lies in the fact that they are not directly part of the management. They provide an impartial and balanced perspective while discussing issues related to the board.The CEO is responsible for the entire range of operations of the company. He reports directly to the Chairman and the board of directors. He implements board decisions and ensures the smooth running of the company with the help of his fellow senior managers. The COO and the CFO are referred to as senior Vice Presidents. The COO looks after operational aspects of the company while the CFO is responsible for the financial health of the company.
