Traditional Organizational Structure

In a time of unprecedented change, many companies still use a traditional organizational structure

In recent years, a variety of organizational structures have come into fruition, such as matrix (flat), networked or virtual. But, the traditional, hierarchical organization still exist. The traditional organization is lead by a President/CEO, followed by the COO/CFO, followed by department heads and then employees within each department.

President/CEO

The President or Chief Executive Officer (CEO) is the lead officer of the organization. He is responsible for carrying out the directives and initiatives set forth by the board of directors. He reports directly to the board of directors and ultimately the stockholders.

COO/CFO

The Chief Operating Officer (COO) and the Chief Financial Officer (CFO) are next in line to the CEO. They are often referred to as vice presidents. The COO and CFO report directly to the CEO.

Department Heads

Department heads manage each individual department, such as human resources, accounting, information technology and engineering. Department heads report to the COO or CFO or some combination of both.

Employees

Employees carryout the day-to-day work required to produce and deliver products and services sold by organizations. They report to the department heads.

References

• Reference For Business: Organizational Structures