Dos and Don’ts in Developing Organizational Charts

Students analyzing strategic-management cases (and actual corporate executives) oftentimes revise and improve a firm’s organizational structure. This section provides some basic guidelines for this endeavor. There are some basic dos and don’ts in regard to devising or constructing organizational charts, especially for midsize to large firms. First of all, reserve the title CEO for the top executive of the firm. Don’t use the title president for the top person; use it for the division top managers if there are divisions within the firm. Also, do not use the title president for functional business executives. They should have the title chief, or vice president, or manager, or officer, such as “Chief ...

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