If you are new to the corporate world, you may not understand the corporate hierarchy or the meaning of individual job titles. What is a senior VP in charge of digital marketing anyway? While every organization has its own way of organizing itself, corporations usually operate with a board of directors, an executive team and a management team. It's like a pyramid, with each tier managing and overseeing the people who sit beneath.
Board of Directors Sets the Strategy
A company's board of directors sits at the pinnacle of the corporate structure. It usually meets quarterly to make top-level decisions needed to run the company. The board typically consists of members elected by the corporation's shareholders or founders. The chief executive officer of the company usually has a seat on the board of directors and is responsible for overseeing the company's operations. In some organizations, the CEO may be called the chief operations officer instead. It all depends on the company's internal structure.
Executive Team Implements the Strategy
The company's executive team generally reports to the CEO or COO. Each officer oversees a specific area of the company as their title depicts. Officer titles include chief financial officer, chief marketing officer, chief information officer, chief compliance officer, chief human resources officer, chief knowledge officer and more. Corporate titles vary from company to company based on the board's assignation and the company's structure.
Vice-Presidents and Other Officers Manage the Managers
Different corporations use different corporate hierarchies, and there is no actual rule on what each successive tier must be named. In general, vice presidents lie either directly beneath the CEO or other chief officers. In smaller corporations, executive officers may also carry these titles as well. Some companies may choose a level of directors that sit below the company's officers or vice-presidents. Terms such as "senior" and "associate" might distinguish additional corporate titles, creating further distinctions within each tier. For example, a senior vice-president is ranked higher than just a vice-president.
Management Teams Look After Daily Operations
Some companies may call their departmental heads managers or directors, such a director of marketing, inventory manager, warehouse director or accounting manager. This level in the corporate structure reports up the chain to the vice-president or executive team level, based on the individual company. Beneath directors or managers, you can find individual supervisors and employees. The actual workers sit below supervisors and managers. Employee designations could include senior and junior to further designate the employee's place in the company's hierarchy.
Alan Li started writing in 2008 and has seen his work published in newsletters written for the Cecil Street Community Centre in Toronto. He is a graduate of the finance program at the University of Toronto with a Bachelor of Commerce and has additional accreditation from the Canadian Securities Institute.