Strategy and development of the organizational structure of companies

It is known that the boards of directors of companies are the center of leadership of the company, as they lead the company from drawing up its policy and objectives to following up on its performance and monitoring its operations and finances.

Mohamed Mohaker - • Corporate finance management

Strategy and development of the organizational structure of companies :-

(2) Boards of Directors in Companies

Introduction :-

It is known that the boards of directors of companies are the center of leadership of the company, as they lead the company from drawing up its policy and objectives to following up on its performance and monitoring its operations and finances. It is wrong to believe that the work of the Board of Directors and its role is limited to the general supervision of the company, but the role of the Board is the primary role in the company, and it is responsible to shareholders for what is happening and happening in the company even if the Board delegates the performance of a work or a group of work to a person or persons, including the performance of executive management, so the Board of Directors is accountable to shareholders for what happens from the executive management.

The functions of the Board of Directors in the financial, administrative and human resources sectors are summarized in managing and leading the unit in order to achieve its objectives in light of the quality strategy, and within the framework of the laws and regulations governing it. The Board of Directors also approves the policies, programs and systems of work governing the company. This is done through the development of the internal system of work in the unit, defining the terms of reference and the general description of the duties of its employees, in addition to approving the systems of interaction with the authorities related to development activities and quality assurance and accreditation systems. The Board of Directors considers the reports submitted by the Executive Director of the Unit on the progress of work, as well as reports on the various departments. It also decides to accept donations and donations made to the company and present them to the Board of Directors for approval to take appropriate action. The Board of Directors meets regularly once every two months at the invitation of the Chairman of the Board of Directors to discuss the action plan emanating from the quality strategy, in preparation for its approval and providing the necessary capabilities for implementation. The Board of Directors also oversees the Company's financial rules. In the end, all decisions are made under the supervision of the Chairman of the Board of Directors, according to the organizational structure

Governing Law :-

It is worth noting that the formation of the board of directors in joint stock companies specifically is in accordance with the procedures governed by Law 159 of 1981 in addition to the company's articles of association, but otherwise from companies (solidarity, simple recommendation, limited liability), the board of directors is a group of managers who are often the company's partners.

Tasks and competencies of the main leaders :-

Of course, the board of directors of the company is at the head of its organizational structure with different competencies, powers and responsibilities of each member of the board of directors - and we will address in the following lines to clarify the concept of organizational structure with a focus on clarifying the tasks and competencies of the main leaders in the management of the company .....

Many companies currently use hierarchical organizational structure in their internal organization. This type of organizational structure is characterized by a hierarchical order, where there is a series of orders circulating among employees. Thus, each employee submits his report to his direct supervisor, who submits it to his direct supervisor, and so on until he reaches the highest managerial levels in the company.

The hierarchical organizational structure is characterized by regular arrangement and balanced distribution of power within the company. Thus, there is faster and stricter employee guidance, which reduces the occurrence of error and increases the effectiveness of work within the company. Another feature of a hierarchical organizational structure is quick and effective access to information.

However, a hierarchical organizational structure can be inappropriate for all companies. It is characterized by rigor and strict guidance of employees, which affects creativity within the company. It also has a high cost in management and can be inefficient at times.

Therefore, it is essential to think carefully about the type of organizational structure that suits your company. A hierarchical organizational structure may be the best solution for companies that require guidance and rigor in the business. Therefore, you have to choose the organizational structure that suits the nature of your business and your organizational needs.

Hierarchical organizational structure of the Board of Directors :

Role of the Chairman of the Board of Directors :-

He is that member who is appointed from among the formation of the Board of Directors as Chairman of the Board of Directors of the company

The role of the Chairman of the Board of Directors is to carry out several important tasks to achieve the company's objectives and develop them continuously. The Chairman presides over the sessions of the Board of Directors and the General Assemblies of the subsidiaries, and sets the agenda for the Board sessions in consultation with the Executive Managing Director. It also ensures that sufficient and accurate information is available in a timely manner and that the Executive Managing Director implements the decisions of the Board, and ensures that monthly reports on the results of the company's business, investment projects to be implemented and financing programs are prepared in the manner specified by the Board. The Chairman of the Board of Directors is also responsible for ensuring the effectiveness of the governance system applied in the company as well as the effectiveness of the Board's performance to accomplish its tasks to the fullest in order to achieve the desired objectives. In addition, the Chairman of the Board of Directors has the authority to approve the draft general budget of the Company and to approve the rules for concluding contracts related to the Company's dealings with third parties and accepting grants, donations and donations received to the Company and consistent with its purposes, subject to the acceptance authorities. Therefore, the Chairman of the Board of Directors must be able to develop and manage the company efficiently by successfully carrying out his critical tasks.

The role of the Managing Director of the company :

The Managing Director means any member of the Board of Directors who has been seconded to be directly following up the work of the actual management, and the Managing Director must be full-time for the work of the management (compared to the Chairman of the Board of Directors, who is directly following up on strategic matters) and the role of the Managing Director and the Managing Director is concerned with managing the company, managing its affairs and supervising the workflow in all sectors of the company, including the work of other Managing Directors. It may also delegate some of its competencies to one or more members of the Board of Directors. All this makes sure that the company is successfully managed and organized.

The CEO is at the top of the hierarchy. Represents the company before the judiciary in accordance with the company's articles of association and his tasks include the general strategy of the company, improving and developing the company's business plan, and providing research that contributes to the growth of production and raising the market value of the company. For the purpose of delegation, he oversees the functions of the Managing Director, General Manager and other sub-departments, and has the authority and position to turn the vision into reality that can be used for the future of the company.

Certainly, the Managing Director has a key role in the management of the company and its management plans, as it is the cornerstone of managing the company's affairs.

The role of the member of the Board of Directors for Financial and Administrative Affairs :

The role of a member of the Board of Directors for Financial Affairs is to carry out tasks and responsibilities related to the financial and accounting aspect of the institution or company. A member of the Board of Directors for Financial Affairs is responsible for setting effective and legal financial policies and procedures in the organization. In addition, it follows up and analyzes the financial statements and reports on the financial results of the Board.

The role of the Board Member for Administrative Affairs is to provide advice and advice to the executive management regarding organization, management and administrative policies. The member works on developing and implementing strategies and action plans that enhance the efficiency and effectiveness of administrative work in the institution. Enhances the role of the member in achieving financial sustainability and sustainable performance of the institution through data analysis and management reports and making wise decisions in this context. In addition, the member may undertake management performance review, guide recruitment policies, and train and develop the organization's administrative staff.

The role of a member of the Board of Directors for Marketing Affairs :

It consists in making strategic decisions for marketing in an organization or company. A board member analyzes economic and market data and information to understand customer needs and direct marketing guidance to achieve the company's goals. The board member also identifies new marketing opportunities, develops innovative marketing strategies and enhances the organization's reputation in the market. A member of the Board of Directors is one of the members of the executive team who contributes to making important decisions for the expansion and commercial growth of the company.

The role of the Board Member for Operational Affairs :

It is to manage the workflow and daily activities of the company or organization and ensure the safety and effectiveness of its work. The member oversees the operating and implementation strategies, analyzes data and performance, and makes the necessary decisions to develop and improve the company's operations. The member also builds specialized teams, recruits and trains employees, and contributes to the development of quality improvement strategies and productivity enhancement. Its main objective is to ensure the achievement of financial and commercial objectives and to provide high quality products and services.

The role of the member of the Board of Directors Logistics (Logistics) :

A board member in logistics (logistics) plays an important role in managing and organizing the supply chain in the organization. The following are some of the tasks that a member of the Board of Directors can perform in logistics (logistics):

Develop logistics and catering policies and strategies for the organization, planning and organizing to obtain the necessary materials and resources to meet the needs of the institution.

Manage the supply chain in an efficient manner and properly implement logistics operations.

Hold Board meetings and share the necessary insights and analysis to Board members.

Review and evaluate performance and financial reports to ensure that the desired objectives are achieved.

Negotiate with suppliers and manage their contracts and agreements.

Work to improve and modernize supply chains and develop logistics processes to increase efficiency and reduce costs.

Safeguarding shareholders' rights and ensuring transparency and accountability in logistics and catering operations is also an important part of the role of a member of the Board of Directors.

The role of the company's general manager :

The General Manager is the highest official in the company's administrative hierarchy, and he is that natural person appointed by the Board of Directors who is not a member of the Board of Directors.

He is responsible for all decisions made within it. To successfully manage the company, it needs and includes the role of the General Manager heading the executive body of the company under the supervision of the Managing Director, Chairman or CEO of the company.

And access to all the company's services, responsibilities and projects. Also, he needs to have extensive experience to identify and analyze market trends, and ensure the company's optimal sustainability. The General Manager's duties also include managing the company's relations with its employees, and implementing the company's policies and management system appropriately. The role of the general manager is characterized by supervising the lower managers as he receives their reports, and controlling costs and budgets related to the company's business. In general, the General Manager plays a vital role to control the company's work and ensure its continuity and sustainability with the highest level of productivity, quality and profitability.

The role of department managers in the company :

The role of department managers is one of the main roles in the company as they supervise the administrative processes of the organization and organize them in an effective manner. The Department Manager is distinguished by working with a team of administrative assistants and other support staff to ensure that the company's goals are effectively achieved. The Managing Director prepares strategic action plans to achieve the company's goals and promote development and research in order to promote business growth. It also follows technological developments and trends to stay competitive and ensure the proper functioning of work and supervise department managers and heads. The Managing Director also updates and informs the Board and CEO about business strategies and objectives of the organization, as well as ensuring the proper functioning of the business and the development and implementation of policies related to their departments or companies. To achieve this important role, department managers are required to have sufficient competence and experience in this field, which includes the ability to plan, direct, supervise, analyze, communicate and work hard to reach their company's goals with high efficiency.

The role of the company's chief financial officer :

The role of the financial director of the company is of great importance. The Chief Financial Officer is responsible for managing the financial and accounting aspects of the company. Among the tasks of the Chief Financial Officer are:

Financial planning: analyzes financial and economic data and develops financial strategies and plans for the company to achieve goals and profitability.

Financial forecasting and control: Tracks the company's financial performance, analyzes financial statements to identify potential trends and risks, and make the right financial decisions.

Finance Management: The Chief Financial Officer manages the Company's cash flows, including managing assets and liabilities and dealing with banks and investors to finance the Company's activities.

Communication with internal and external financial parties: The CFO cooperates with internal parties such as the marketing department, the procurement department, and the company's executive management, in addition to dealing with external parties such as investors, banks and regulators.

Financial Compliance and Reporting: The Chief Financial Officer complies with applicable financial laws and regulations and prepares the necessary financial and tax reports for the Company.

In general, the CFO acts as part of the company's management team and contributes to financial growth and sustainability.

The role of the production manager :

It is the supervision of all production processes in the organization. The manager plans, organizes and executes production processes to ensure that the company's needs are met and its objectives are achieved. This includes managing workers, material and financial resources, monitoring the progress and quality of work, and verifying compliance with sanitary and environmental standards and regulations. The manager is also responsible for problem solving and continuous improvement of production processes for efficiency and quality.

The role of the marketing manager :

It is to achieve the company's goals through the development and implementation of marketing strategies. The Marketing Manager analyzes the market, understands customer needs, competition and industry trends, develops and implements marketing campaigns and oversees the advertising and promotion of products or services provided by the organization. He also manages, directs and develops the marketing team. The marketing manager is an integral part of the company's management and has a significant impact on the success of marketing strategies.

The role of the purchasing manager :

It is the organization and management of the procurement and supply process in the enterprise. The manager studies the organization's needs for materials, goods and services, identifies suitable suppliers, negotiates contracts and launches purchase orders. The role of the manager is to ensure the availability of materials and goods of the required quality, maintain stock balance and reduce costs. The manager also monitors and evaluates supplier performance and takes the necessary measures to improve the supply process and strengthen relationships with suppliers.

The role of the HR manager :

It is the supervision and management of processes related to human resources in the organization. This includes recruiting, developing and training qualified workers, managing wages and bonuses, managing performance and evaluation, resolving lab or disputes, and developing human resources policies. The Human Resources Manager aims to ensure the implementation of the organization's strategies, maintain an effective and organized workflow, and promote organizational culture and employee satisfaction.

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