Corporate management includes controlling the activities within an organization to achieve its goals. One main goal of corporate management may be to maximize profitability by creating strategies that foster productivity, quality work and positive relationships between employees. Managers who understand their company’s mission can create a strategic plan for accomplishing the milestones. They can also consider various factors that affect the organization, such as market trends and industry changes.

The process of corporate management can be vital in helping an organization meeting its objectives. Corporate managers may complete the following tasks:

Creating and maintaining a budget

Hiring employees

Communicating with management and staff members

Creating a corporate management strategy to meet the company’s goals

Monitoring management decisions for consistency with company policy, mission statement and core values

Types of corporate management models

Anglo-American Model

Under the Anglo-American Model of corporate governance, the shareholder rights are recognised and given importance. They have the right to elect all the members of the Board and the Board directs the management of the company. Some of the features of this model are:

• This is shareholder oriented model. It is also called Anglo-Saxon approach to corporate governance being the basis of corporate governance in Britain, Canada, America, Australia and Common Wealth Countries including India
• Directors are rarely independent of management
• Companies are run by professional managers who have negligible ownership stake. There is clear separation of ownership and management.
• Institution investors like banks and mutual funds are portfolio investors. When they are not satisfied with the company’s performance they simple sell their shares in market and quit.
• The disclosure norms are comprehensive and rules against the insider trading are tight
• The small investors are protected and large investors are discouraged to take active role in corporate governance.

German Model

This is also called European Model. It is believed that workers are one of the key stakeholders in the company and they should have the right to participate in the management of the company. The corporate governance is carried out through two boards, therefore it is also known as two-tier board model. These two boards are:

1. Supervisory Board: The shareholders elect the members of Supervisory Board. Employees also elect their representative for Supervisory Board which are generally one-third or half of the Board.
2. Board of Management or Management Board: The Supervisory Board appoints and monitors the Management Board. The Supervisory Board has the right to dismiss the Management Board and re-constitute the same.

Japanese Model

Japanese companies raise significant part of capital through banking and other financial institutions. Since the banks and other institutions stakes are very high in businesses, they also work closely with the management of the company. The shareholders and main banks together appoint the Board of Directors and the President. In this model, along with the shareholders, the interest of lenders is recognised.

Social Control Model

Social Control Model of corporate governance argues for full-fledged stakeholder representation in the board. According to this model, creation of Stakeholders Board over and above the shareholders determined Board of Directors would improve the internal control systems of the corporate governance. The Stakeholders Board consists of representation from shareholders, employees, major consumers, major suppliers, lenders etc.

Indian Model

In India there are mainly three types of companies’ viz. private companies, public companies and public sector undertakings. Each of these companies has distinct kind of shareholding pattern. Thus the corporate governance model in India is a mix of Anglo-American and German Models.

How to create a corporate management strategy

As companies face changes in technology and customer demands, they may need to review their corporate management strategy frequently, which can ensure they stay competitive in their industries. Here are some items to consider when developing your management system:

1. Assess the business

A corporate management strategy may start with an assessment of strengths, weaknesses and opportunities within the organization. Host a meeting with corporate management and the board of directors to discuss the current revenue of the business and how to improve any processes. Create a list of target objectives with deliverables to update your company’s corporate management strategy.

2. Set goals

The next step is to set goals based on the business’ assessment. The organization can focus on these action plans on achieving corporate management targets, such as profitability or market share. Objective measures may include financial metrics, such as return on investment. A company may also want to monitor subjective measures, such as employee satisfaction surveys. Consider rewarding leadership staff with a bonus or stock options for reaching company goals.

3. Determine general guidelines for on boarding

To ensure success for management and staff, determine general guidelines for on boarding. Managers can use the on boarding process as an opportunity to set expectations for new hires. Managers may have their new employees complete an orientation checklist to ensure they learn the benefits and organizational culture. By establishing standards for new hires, the leadership team can ensure all team members understand the corporate management structure.

4. Create company policies

It’s important to make sure your company creates and follows policies that share information about procedures and overall goals for collaboration with management. To help managers update the company policies, here are a few tips they can follow:

Make a policy document with all the relevant information in one place.

Send company policies regularly to employees to verify that each team member understands the goals of the company.

Encourage feedback by members of the leadership staff to improve policies and procedures.

5. Update management strategies as needed

RESPONSIBILITIES OF A CORPORATE MANAGER

These components form the core of the corporate manager’s job responsibilities. Once the overall long-term vision is delivered by the top leadership — no matter what sort of corporate model is being used — it’s these company leaders that sit down and decide what pieces of the company will allow them to complete this puzzle.

Corporate managers look at the company’s organizational structure with an eye on not just what’s fixed now but what could be possible if manpower and headcounts were shifted between departments. They look at the company’s production, normal operations and revenue and try to identify opportunities for change that can better balance a company’s portfolio. This also helps them understand the risk involved in any particular opportunity and how to judge its value against the company’s baseline.

Corporate managers are expected to be strong leaders who can build trust both with top executives and intermediate management, as well as understand their role in communicating and implementing a company’s long-term vision.

SUCCESSFUL CORPORATE MANAGEMENT

Corporate managers need to embody good leadership traits to be successful in their roles. They need to think strategically and long-term but also make good decisions in a timely manner to keep the company moving forward. Many of the obvious leadership traits are required for success in this type of position.

• Building successful relationships: Corporate managers need to have effective professional relationships with the executive officers, board of directors and shareholder representatives. These relationships need to embody trust and respect so that there can be a real collaboration between the company’s leaders and those external bodies a company reports to so information can be passed on easily.
• Listening when communicating: Corporate management isn’t just about a manager giving direction; it’s also about listening to what other parties are saying and what they need and then responding directly to those issues. Management can help build important trust by showing that they’re hearing what teammates are telling them about the business.
• Decision making: Corporate managers need to be able to make good decisions based on the data available. They should recognize when additional data is needed but should also have a good corporate foundation to build on when information isn’t available and the decision needs to be made. Good leaders make decisions, own them and remain accountable for them. They should also empower their subordinates to make independent decisions and support them when they do.
• Strategic Planning: Corporate managers are the first stop when executive leadership makes a decision to be implemented downward. They must understand how to turn this into a plan that’s capable of meeting the target and feasible enough to have little risk. They’re responsible for making the plans that lower management tiers are then expected to implement. 

These aren’t the only skills required, but they’re particularly key at the level where corporate managers operate. In many ways, they’re the level most responsible for creating and driving organisations to higher levels.