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O R G A N I Z A T I O N
ˇ@ ˇ@ The duty of manager is to structure the organization so that its goal is met, its employees are offered satisfying works, and other criteria of effectiveness are fulfilled. Some of the elements of the organizational design are hierarchy of authority.
Hierarchy of Authority:
A hierarchy of authority is a ranking or ordering from top to bottom. It is also a ranking of people in an organization in accordance with their authority. The value of hierarchy is that it reduces confusion about who gives orders and who obeys them.
PYRAMID HIERARCHY STRUCTURE ˇ@ ˇ@ ˇ@
1.
Managing Director
2.
Directors
3.
Regional Managers
5.
Area Managers
4.
District Managers
6.
Junior Managers
    ˇ@ STRUCTURE OF CORPORATION
All private corporations have the same basic structure. They are made up of the shareholders who own the company and set the company policy and appoint top management.
The Shareholders:
The shareholders in the corporation do not do much, they just attend the quarterly Shareholders and Board of Directors meeting. If the Shareholders cannot attend this meeting, they can vote by proxy.
A proxy is a statement which authorizes someone else to vote for the shareholder. In most cases, proxies are requested by the management of a corporation.
Board of Directors:
Board of Directors in most companies in Cambodia range the size from 5 to 7 persons. The Board of Directors are ultimately responsible for the management of the corporation. The Management of Board normally includes the following:
1- Electing the corporationˇ¦s top officers, the most important of whom is the Chief Executive Officer (CEO).
2- Setting corporation policy in the area of product offerings, services, prices, wages and labor-management relations.
3- Deciding how to finance corporate expansion.
4- Deciding whether to pay a cash dividend to shareholders.
5- Establishing salary levels and compensation packages for the firmˇ¦s top officers. ˇ@ ˇ@ The Top Management Officers:
The top management officers are appointed by the Board of Directors, these Managers have the rights to act as the representative of the company. They, in short, can sign contract in the name of the company. Their duty is to watch the marketplace and to decide which new products to introduce, which new market to enter, or which product to stop selling and making the feasible study about the advantage and disadvantage of sale, then they present their ideas to the Board of Directors for approval.
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