Mary Joy M.

Marcos March 30, 2023

BSIS- II DMS101

Subject: Organization and Management Concept

Company name: Manila Services Water Services, Inc.

 Brief Description of designation

 Responsibilities, functions and activities
 Skills

 BOARD DIRECTORS
- Plays a role in both the daily and long – term operations and decisions made by an organization. A
board serves as a protective entity for the interests of a company’s shareholders, meeting regularly
to discuss ways to increase returns and overall profits.

- Also known as “board” or “B of D”, is a group of people elected by a company’s shareholders to

represent their interests. The board acts as a governing body for a company or corporation. Their
primary goal is to protect the assets of the shareholders by ensuring an organization’s management
acts on their behalf and that they get a good return on their investment (ROI) in the company. They
do this by meeting regularly to create policies for overall company oversight and management.

FUNCTIONS of BOARD of DIRECTORS

In a broad serve, a corporate board of directors acts as a fiduciary for shareholders. The board is also
tasked with a number of other responsibilities, including the ff:

 Creating dividend policies

 Creating options policies
 Hiring and firing of senior executives (especially the CEO)
 Establishing compensation for executives
 Supporting executives and their teams
 Maintaining company resources
 Setting general company goals
 Making sure that the company is equipped with the tools it needs to be managed well

 CORPORATE SECRETARY
- Is a senior position within a private or publicly held compensation. These professionals usually
handle the administrative operations of the company’s board of directors and the upper
management. Although they manage these tasks, they aren’t part of the company’s management
 team or a member of the board. Corporate secretaries usually govern and advise both instances,
and their authority and duties may rely on the resolutions issued by the board of directors.

- The corporate secretary fills an important role within a corporation, as they ensure the organization
follows best practices, its governance structure, and provincial and federal regulations. In the
boardroom, they ensure members follows procedures before, during and after official board
meetings. They liaise with the chairperson, president, board and a corporation’s upper
management. A corporate secretary, sometimes called “company secretary” or “compliance officer”,
provides strategic business and supervisory support to senior levels of management and the board
of director. A corporate secretary is an advocate for both the shareholders and the corporation, so
they remain unbiased when performing their duties.

REQUIREMENTS and RESPONSIBILITIES

Corporate secretary executes and maintains all required official corporate filings, documents,
reports and records according to applicable laws and regulations. Responsible for shareholder relations,
communicating with Board members and coordinating shareholder lists and registrations. Being a Corporate
Secretary researches and responds to shareholder requests for information. Manage the coordination of Board
and shareholder meetings and the preparation of all necessary agendas and documents required for the
meetings. Additionally, Corporate Secretary the incumbent in this role is usually in an officer of the corporation.
May require a Juris Doctor degree. Typically, reports to top management. The Corporate Secretary manages a
department function within a broader corporate function. Develops major goals to support broad functional
objectives. Approves policies developed with various sub- functions and departments. Comprehensive
knowledge of the overall department functions.

 COMPLIANCE OFFICER
 A compliance officer is an employee of a company that ensures the firm is in compliance with its
outside regulatory and legal requirements as well as internal policies and bylaws. The chief
compliance officer is usually the head of a firm's compliance department.
Compliance officers have a duty to their employer to work with management and staff to identify
and manage regulatory risk. Their objective is to ensure that an organization has internal controls
that adequately measure and manage the risks it faces. Compliance officers provide an in-house
service that effectively supports business areas in their duty to comply with relevant laws and
regulations and internal procedures. The compliance officer is usually the company’s general
counsel, but not always.

How Compliance Officers Work

A compliance officer is an employee of a company who helps that company maintain policies and procedures
to remain within an industry's regulatory framework. The duties of a compliance officer may include reviewing
and setting standards for outside communications by requiring disclaimers in emails or examining facilities to
ensure they are accessible and safe. Compliance officers may also design or update internal policies to
mitigate the risk of the company breaking laws and regulations and lead internal audits of procedures.
A compliance officer must have a thorough knowledge of the company and an awareness of where possible
regulatory breaches may occur. It is essential that the compliance officer effectively communicate the
company’s key ethical principles and compliance regulations. Compliance officers organize regular training
sessions for employees to communicate key regulatory changes and updates. This is particularly important in
a heightened regulatory environment where change is constant. The compliance officer must work with
business units and management to ensure appropriate contingency plans are in place that set guidelines on
how to respond to a possible compliance breach.

Compliance officers are expected to provide an objective view of company policies. Influence by other
employees, including management and executives, to overlook infractions may result in significant fines or
sanctions that may lead to financial loss or even business closure. Larger companies typically have a chief
compliance officer (CCO) to direct compliance-related activities.

A Compliance Officer fulfills several functions:

 Monitors all operational processes and procedures using a compliance management platform to

ensure that the company complies with all legal regulations and ethical standards.
 Manages information flow by researching, recording and analysing data and information. With a
regular flow of information and conducting compliance risk assessments, they ensure that the business
runs smoothly.
 Trains and educates staff so that they are informed of any legal changes and updates to compliance
guidelines.
 Acts as contact person and liaison between department heads and senior management.
 Conducts regular assessments to determine whether policies are compliant with the law.

 EXECUTIVE
- An Executive's responsibilities vary depending on an organization or company. However, most
of the time, it involves a great deal of leadership and communication. An Executive must
oversee and direct employees towards particular sets of goals and vision, create strategies and
plans that will benefit the company's financial gains and workforce, and as well as evaluate and
analyze the progress of various company departments. Moreover, an Executive holds the power
of decision-making, such as in the aspects of budget, promotions, and policies.

EXECUTIVE RESPONSIBILITIES

Here are examples of responsibilities from real executive resumes representing typical tasks they are likely to
perform in their roles.

 Manage capital investments and operating costs to generate ROI, IRR and cash flow.
 Facilitate KPI dashboard for actual performance to forecast/targets and drive action plans to achieve
them.
 Manage reputation for search engine optimization, and reputation of website and business as a whole
through SEO.
 Manage several multi-phase DoD programs and projects simultaneously.
 Manage events for fundraising, donor recognition and alumni relations.
 Delegate & execute human resources, payroll management, marketing/sales techniques training &
development.
 Practice focus on ERISA and tax matters.
 Prepare elaborate spreadsheets, PowerPoint presentations, and translations.
  Transfer current BMS employees into the department as required.
 Develop menus and work with the culinary teams and management during production.
 Coordinate events, creating invitations and promotional materials, and booking venues.
 Use of professional administrative skills and BMS applications on a daily basis.
 Design new employee orientation PowerPoint and conduct all new employee orientations for the
property.
 Install AppDynamics APM agent on the linux host and instrument the configuration settings with
controller.
 Develop an array of different selling techniques base on the client's needs, budget and ROI.

LEGAL and CORPORATE GOVERNANCE DEPARTMENT

In today’s corporate world, the concept of Corporate Governance has attained substantial prominence for
systematic and well-organized management of day- to-day corporate affairs and complying with legal and
regulatory necessities.
It is universally known that nowadays, Corporate Governance is at the heart of the corporate management
and has the power to dictate the success or failure of a company in so far as complying with the legal
obligations, achieving business objects and ultimately reaching the targeted financial projections.
As a result, more and more companies are enunciating their Corporate Governance policies and
procedures of its own delineating the protocols to be adhered for:
·        The administration of the company affairs;
·        Effective dispensing of company’s business operations;
·        Dealing with the conduct of company personnel (e.g., Prevention of Sexual Harassment at work);
·        Handling client management; and
·        Complying with rules and regulations formulated by the government and regulatory authorities.
While formulation of the Corporate Governance policies and procedures is one side of the coin, numerous
companies are despondently dwindling in austere execution of the Corporate Governance policies and
procedures.

Functions of a legal department in a company from the Corporate Governance aspect:

The legal department of a company is responsible to:
·   Make certain company is complying with existing laws and regulations without flop.
·   Educate the company management about cutting-edge development of laws and consequences for botch
to comply with such laws.
·   Articulate company policies and procedures with the objective to inculcate the elements of accountability
and responsibility into the organization workflow.
·   Provide sound legal advice to the company and its personnel in relation to any legal and compliance
transaction and guide them in right path to preserve clean Corporate Governance standards within the
organization.
·     Maintain all legal, financial and business records of the company up to date with clean and spotless
information to prevent any violation of laws and leaving no latitude for any fraudulent deeds within the
organization.
·    Conduct workshops on the importance of compliance with the existing laws and regulations along with
internal policies and procedures to all departments of the company.
·     Build a robust mechanism to identify the fraudulent intent of any company personnel at grass root level
and ensure that such personnel getting punished for bad vices and no longer working in the company or
any other company.

AUDITING
An auditing career requires many competencies, including keen analytical skills, strong communication skills
and technical proficiencies with the subject matter under audit.

Auditors play a key role in validating the integrity of an organization’s processes, systems and information, both
financial and non-financial. Professional auditors also provide advice and consultation to business leaders on
how to better manage and control risks within an organization.

Auditing is a rewarding and well-regarded career, whether you are a member of an in-house auditing team or
you work with a variety of clients.

What Does an Auditor Do?

An auditor conducts assessments of processes, systems and information to validate their integrity and
conformance to established policies and other criteria. To understand how to prioritize auditing efforts, an
auditor might perform a risk assessment before conducting an audit. Most auditors specialize in particular
subject areas, such as financial statement auditing, IT auditing or process auditing.

Though some auditors are external, it’s not uncommon for companies to employ in-house auditors. Auditors
are also responsible for noting where an organization can improve its processes, become more efficient and
decrease risk.

Advising Oversight Bodies

The results of an audit are typically provided to an oversight body, such as an audit committee, a governing
board or an outside regulatory agency. For this reason, an auditor may also be known as an assurance
provider. The assurance work provided by an auditor helps oversight groups fulfill their responsibilities, and the
auditing profession is often seen as a pillar of good governance.

Skills for Auditors

Auditors must be detail-oriented and enjoy problem-solving. They must also be able to think strategically and
relate the results of their work to the broader objectives of the organization subject to audit. It’s important for an
auditor to have a high ethical standard due to the nature of their work. Many professional audit associations
require their members to conform to a code of ethics.

What Is an Audit?

Auditing approaches can vary greatly, but a typical audit can be divided into three phases:

1. Planning. During this phase, an auditor obtains an understanding of the activity under audit. They
note areas of heightened risk and develop the objectives, scope and procedures that inform their
audit testing. External auditors commonly perform materiality assessments during planning to
identify high-risk financial accounts to include within the scope. The auditor schedules meetings with
managers of the activity subject to the audit to communicate expectations and request necessary
information.
 2. Fieldwork. During this phase, the auditors will execute their planned audit test procedures. This
phase may require traveling to the physical location or operating site of the activity subject to audit.
Some auditors travel extensively over the course of their careers, and the position may require travel
to international or remote destinations.
3. Reporting. During this phase, the auditor will draft the results of the audit, often in a written report,
and may provide recommendations to address any issues noted. Once finalized, the report is often
distributed to managers of the activity subject to audit and made available to the appropriate
oversight body.

Audit Reports
A typical audit report includes the objectives and scope of the audit, plus any issues identified, which can be
referred to as audit findings. Common audit findings include:

 Errors or inaccuracies in financial accounts or data

 Non-compliance with policies or operating procedures
 Deficiencies in the internal controls that would prevent or detect fraud, errors and other issues
Auditors often issue recommendations and propose action plans to address their findings. In the case of
financial statement audits, an auditor might ask management to adjust certain financial accounts found to
contain errors before issuing a financial statement.

Post-Audit Procedures
Auditors may also conduct post-audit follow-up procedures to confirm that their recommendations have been
implemented or appropriate actions have been taken to address the identified findings. Internal audit
professional standards require that monitoring and follow-up procedures be in place.

Where Do Auditors Work?

An auditor works either as part of an organization’s internal auditing team or for an outside firm.

Most audit work is performed in an office environment. Many audit test procedures involve the examination of
documents and interviews or inquiries with the business managers subject to audit. However, there are times
when an auditor may be expected to work outside of an office. For example, an inventory count may require an
auditor to physically count inventory that is in stock and compare the quantities observed to financial records.

Other audit test steps may require an auditor to physically observe a process, such as validating that activities
conducted on an assembly line conform to standard operating procedures. Environmental auditors may visit
facilities to confirm that specific environmental compliance equipment is in place and is operating as intended
to prevent pollution or ensure compliance with other environmental matters.

 TALENT and RENUMERATION

Talent Development Matters in Business

- Talent development creates a sense of cohesion. Many times, employees from different
departments feel a disconnect between what happens with their fellow co-workers, especially if
they work in different functional areas. 

- It helps maintain institutional knowledge. By recognizing and investing in talent early on, you
can promote employees who have been with your company since the beginning. This has been
 true for my own team, and though these employees might have had less overall industry
experience, they, more importantly, had a deep understanding of our product and were best
equipped for leadership roles since they knew exactly what it takes to develop and pitch the
software. Being a startup, some departments are newer and rapidly growing, so having those at
the company who understand the company and its vision inside and out are often best-
positioned to lead a team effectively.

 - It can also increase morale. No one wants to be in what they feel is a dead-end job. I believe
everyone wants to be able to feel challenged, fulfilled and appreciated at work. By working on
developing internal talent, you give employees the opportunity to train cross-functionally in other areas
of interest they have an aptitude for but in which they have never been given the chance to shine. 

RENUMERATION

Remuneration is any type of compensation or payment that an individual or employee receives as payment for
their services or the work that they do for an organization or company. It includes whatever base salary an
employee receives, along with other forms of payment that accrue during the course of their work, which
includes expense account funds, bonuses, and stock options.

 Remuneration is the total amount an employee receives for performing a job.

 Remuneration includes not only base salary but all other forms of financial compensation an employee
receives.
 A company contribution to a retirement plan is deferred compensation, and as such is a component of
remuneration.
 At the executive level, remuneration may include a combination of salary, stock shares, bonuses, and
other financial compensation.
 For employees in service jobs, tips are considered part of remuneration.
The term remuneration implies total compensation.

At the executive level, remuneration can include options, bonuses, expense accounts, and other forms of
compensation. These are generally detailed in an employment contract.

The amount of remuneration and its components depend on many factors, including:

 The employee's value to the company. Employees with in-demand skills are likely to get more perks.
 The job type. Some are straight hourly or salaried positions while others offer base pay plus
commissions, bonuses, or tips.
 The company's business model. Some companies pride themselves on their generous employee
remuneration and may offer bonuses, employee stock options, and 401(k) plan matching
contributions. Others find such perks to be an unsupportable drag on the finances of the business.
 The general state of the economy. When jobs are plentiful and talent is scarce, companies pull out all
the stops to attract the best candidates. That means better remuneration.

BOARD RISK OVERSIGHT

Boards need to take innovative action steps to increase their oversight over corporate operations.

Starting with their business model, boards need to assess their business model for risks that affect their
viability. It's crucial for boards and management teams to be on the same page relative to the company's risk
appetite and how they intend to pursue creating shareholder and consumer value. Board and management
discussions must center around the company's key success drivers and an assessment of the risks in the
company's strategy. Boards should pay attention to the important relationship between risk and
success because risks can easily threaten the business model.

The board and its standing committees should all be clear on their responsibilities for oversight. Generally,
committees take on various areas of oversight, while the board takes on the primary responsibility for overall
risk oversight. Board oversight includes the following five areas:
1. Governance risks
2. Critical enterprise risks
3. Board-approval risks
4. Business management risk
5. Emerging and nontraditional risks
Boards should think of risk management as more than a side activity. They should also incorporate policies,
processes, people, data, reporting and systems as they formulate risk management plans. Board directors also
need to be specific with management teams about the types and formats of risk information that they need. A
good approach for managers is to offer quantitative information that provides different perspectives on various
risks, as well as forward-looking risk indicators.

Board directors should have a willingness to challenge managers on their data and assumptions. In times of
crisis, it's especially important for board members to challenge managers. In times of prosperity, boards should
not only applaud the company's success, they also need to consider that negative consequences may surface
at any time and expose the company to failure.

Still another risk that board directors need to invest time and attention in is one that is becoming an increasing
concern for shareholders, and that has to do with the company's culture and the incentive structure for
executives. Risk is pervasive in a company's decision-making and operating processes. The board's decisions
in these areas bring the organization's values to light.

Boards must also work to align the critical components of strategy, controls, risks, incentives, compliance and
personnel to form the strongest possible infrastructure. The risk of not getting this right will create a situation
that makes it impossible for the company to execute its strategic plan. Forming the perfect alignment is difficult
for managers to accomplish, as well as for boards to oversee.

Anticipating Emerging Risks

Perhaps the most challenging part of overseeing risk management is trying to factor in the impact of emerging
and interrelated risks. It's difficult to assess the impact of a potential, yet unforeseen, risk even when boards
are able to get a wealth of information from internal and external sources. Risk management requires
connecting all the dots that boards can see, as well as predicting which dots will appear and making a plan for
them as well. Boards need to formulate a solid risk management plan and keep it flexible enough that they're
prepared for changes and are ready to respond quickly and proactively rather than reactively.

NOMINATION
The term nomination committee refers to a committee that acts as part of an organization’s  corporate
governance. A nomination committee evaluates a firm's board of directors and examines the skills and
characteristics required of board candidates. Nomination committees may also have other duties, which vary
from company to company.
KEY TAKEAWAYS

 A nomination committee is a group that is part of the corporate governance of an organization or firm.
 The nominating committee's job includes considering a firm's potential board of directors and other key
management roles.
 Nominating committees often consist of the chair of the board, the deputy chair, and the company's
CEO.

 Nominating committees serve a very useful and important purpose for different organizations ranging
from nonprofits to major corporations. Also referred to as nominating committees or nominating and
governance committees, they are often made up of the chair of the board, the deputy chair, and
the chief executive officer (CEO). There are usually at least two members on each committee,
although the exact number of people who serve on the committee tends to differ based on the type
and size of the organization. The length of time each member serves on the committee also varies
depending on the nature of the entity.
  
 The size of a nomination committee varies based on the type of organization.
-
 These committees are tasked with a series of responsibilities. One of their primary duties is to seek
out candidates to fill a variety of important positions in a company including its board of directors as
well as key management roles. The committees review candidates' qualifications and ensure they
align with the requirements of the company. More about this is outlined a little further down.

 Committees may also need to review and change policies including corporate governance. Corporate
governance is a system of rules and processes that provides the framework for a company to achieve
its objectives. Put simply, corporate governance helps companies stay on track. It's an important factor
when balancing the interests of a company's many stakeholders including—but not limited to—
shareholders, management, customers, suppliers, financiers, government, and community of users.

RELATED PARTY TRANSACTIONS

- The term related-party transaction refers to a deal or arrangement made between two parties
who are joined by a preexisting business relationship or common interest. Companies often
seek business deals with parties with whom they are familiar or have a common interest.
Although related-party transactions are themselves legal, they may create conflicts of interest or lead to other
illegal situations. Public companies must disclose these transactions.

KEY TAKEAWAYS

 A related-party transaction is an arrangement between two parties that have a preexisting business
relationship.
 Some, but not all, related party-transactions carry the innate potential for conflicts of interest, so
regulatory agencies scrutinize them carefully.
 Unchecked, the misuse of related-party transactions could result in fraud and financial ruin for all
parties involved.

What Are Related-Parties?

Related parties include parent companies, subsidiaries, associate firms, joint ventures, or a company or entity
that is controlled or significantly influenced or managed by a person who is a related party.

COMMITTEE of INSPECTORS of ballots and proxies

The Committee membership consists of the Internal Audit Head, the Chief Legal Counsel and a representative
of the external auditor of the Company. It carries the mandate to validate proxies issued by the stockholders
prior to the annual stockholders’ meeting and to determine if the same are in accordance with existing laws,
rules, and regulations. It is also the default inspector of ballots and tabulator of votes during the annual
stockholders’ meeting, and as such, is required to coordinate closely with the Office of the Corporate Secretary
and the independent validator of votes appointed for the purpose.

CORPORATE GOVERNACE OFFICE

- The term Corporate Governance refers to how companies are run and for what purpose.
Corporate governance also defines an organization’s power structure, accountability structure,
and decision-making process. It is essentially a set of tools that enables management and the
board to run an organization more efficiently and effectively.
- Environmental awareness, ethical behavior, corporate strategy, compensation, and risk
management are all aspects of corporate governance.
- A company’s operation and profitability can be negatively impacted by poor governance.
 Corporate governance is a set of rules, practices, and processes used to direct and control an
organization. Boards of directors are the primary force determining corporate governance.
 Accounting, transparency, fairness, and responsibility are the four fundamental principles of corporate
governance.

 The purpose of good governance is to ensure that businesses have the appropriate decision-making
processes and controls to ensure that all stakeholders’ interests (shareholders, employees, suppliers,
customers and the community) are balanced.
 At the corporate level, governance involves setting and achieving the company’s goals while
considering the social, regulatory, and market contexts.
 In other words, this concept refers to practices and procedures for ensuring that a company runs in a
manner to meet its objectives while ensuring that its stakeholders can have confidence that they can
trust the company.
 The Corporate Governance Institute is the home of good governance and believes that good
governance is critical to improving the quality of decisions made by management.
 The ability to make ethical and high-quality decisions is essential to building a sustainable business.

CHIEF AUDIT EXECUTIVE

The chief audit executive is responsible for oversight of all internal audit functions and is charged with assuring
that an effective internal audit function is in place systemwide. Sample responsibilities include evaluating the
reliability and integrity of information and the means used to identify, measure, classify and report such
information; and monitoring and evaluating governance processes.

Organizations can use this sample job description as a starting point to fully define the responsibilities and
qualifications for a chief audit executive role.

Chief Audit Executive Job Duties

A chief audit executive typically has a wide range of responsibilities, which can include:

 Evaluating the effectiveness of internal controls and risk management processes to ensure that risks
are mitigated
 Developing the audit plan and overseeing the audit process from start to finish
 Overseeing the hiring of new auditors and ensuring that they are trained and certified for their positions
 Conducting exit interviews with departing employees to identify potential risks and issues related to job
function or company culture
 Reporting to the board of directors on any breaches in ethics or legal violations identified in an audit
 Recommending changes to policies or procedures, as needed, to prevent future issues
 Reviewing financial statements and other reports to identify potential problems or errors
 Developing an audit plan based on risk assessment and reporting requirements
 Providing information and support to other departments within the organization regarding audit
procedures and findings

INTERNAL AUDIT DEPARTMENT

The internal Audit Department is the independent or non-operation department in the organization set up by
the board of directors and audit committee to perform internal audit services in the company.

It is part of the company’s risk management since part of the internal auditor’s responsibility is also to assess
how the company’s risks are assessed and managed.

The internal audit department is set up to perform the internal audit activities required by the board of directors
or the company’s management and as required by the local law and regulator’s requirements.

This department is run by the chief of internal audit or sometimes run by the head of the internal audit
department of the organization structure and boards’ decision.

CHIEF RISK OFFICER

- A chief risk officer (CRO) is a C- level who’s responsible for evaluating and mitigating risks for a
company.

- A Chief risk officer evaluates a company’s risk monitoring regulatory, technical and competitive
factors. CROs report their company’s CEO or board of directors. The day- to – day risk
management duties for a CRO include determining and evaluating a company’s risk tolerance,
creating strategic plans to mitigate risk and generating reports on a company’s risk and risk
management initiatives and distributing them to employees, executives and stakeholders.
Here are the three (3) main types of risks a chief risk officer mitigates:
 TECHNICAL RISKS. A CRO ensures that its company is protected from technical risks such as cyber-
attacks that may reveal sensitive information.

 REGULATORY RISKS. A CRO ensures that their company is in compliance with all rules, laws and
regulations concerning their industry.

 COMPETITIVE RISKS. A CRO mitigates any risks presented by competition and ensures that their
company’s brand remains positive in the marketplace.

ENTERPRISE RISK MANAGEMENT DEPARTMENT

Enterprise risk management (ERM) is a methodology that looks at risk management strategically from the
perspective of the entire firm or organization. It is a top-down strategy that aims to identify, assess, and
prepare for potential losses, dangers, hazards, and other potentials for harm that may interfere with an
organization's operations and objectives and/or lead to losses.

 Enterprise risk management (ERM) is a firm-wide strategy to identify and prepare for hazards with a
company's finances, operations, and objectives.
 ERM allows managers to shape the firm's overall risk position by mandating certain business
segments engage with or disengage from particular activities.
 Traditional risk management, which leaves decision-making in the hands of division heads, can lead to
siloed evaluations that do not account for other divisions.
 The COSO framework for enterprise risk management identifies eight core components of developing
ERM practices.
 Successful ERM strategies can mitigate operational, financial, security, compliance, legal, and many
other types of risks.

MANAGEMENT TEAM

- Management teams help business owners delegate tasks they may not be able to complete on
their own as their company expands. Not only does a management team increase productivity
by dividing up the responsibilities of running a business, but the members of the team may also
bring valuable skills and knowledge that the business owner may not process.

EXECUTIVE MANAGEMENT TEAMS

This type of management team is most found in the corporate world and reports directly to the CEO of a
company or business. The members of an executive management team usually include:

 CHIEF EXECUTIVE OFFICER (CEO)

- These individuals are the top manager of a company. They oversee each member of their
management team and general staff and make final decisions on budget, hiring, firing,
 marketing strategies and sales techniques. Often, they are the owners of a business, but a
business owner may choose to hire a CEO as a part of a management team. Although CEOs
oversee general operations, they often rely on a highly skilled management team for support,
advice and opinions.

 CHIEF FINANCIAL OFFICER (CFO)

- Manage all aspects related to money and accounting within a business or company. They
create budgets and financial strategies and implement systems to track and manage a
company’s funds. Often, CFOs bring valuable high-level accounting and finance skills to a
company’s management team.

 CHIEF MARKETING OFFICER (CMO)

- These individuals oversee a company’s marketing strategy. CMOs help position a company or
product toward their target audience, differentiate a brand from the competition and oversee
the execution of a company’s marketing strategy.

 CHIEF OPERATIONS OFFICER (COO)

- COOs administer complex operations within a company or business. The COO decides which
data to analyze in order to ensure a smoothly run business and which changes to implement
when problems occur.

GOVERNANCE BODY MANAGEMENT TEAMS

- Governance body management teams provide oversight, control and directions for
organizations and programs. This type of management team is most commonly found among
nonprofits and charitable organizations, but they exist in corporate and business settings as
well. Their primary function is to control the allocation and disbursement of funds according to
a set of defined protocols.

FUNCTIONAL MANAGEMENT TEAMS

- This type of management team is similar to executive management teams, but are typically
smaller and more departmental in nature. The managers of departments such as sales,
accounting, human resources, operations or technology may form management teams that
report to the heads of their departments.

- For example, marketing managers may report on a weekly basis to the head of the marketing
department to discuss strategy.

EMPLOYEES
An employee is a worker hired by an employer to do a specific job. Employers control how employees are
paid, when employees work, and how employees work. In exchange, employees get benefits that contractors
don't.
  An employee is a worker that performs specific tasks for a business in exchange for regular pay.
 Employees negotiate a salary with their employer and typically receive benefits, including overtime pay
and vacation.
 Employees differ from independent contractors in that employers take on the financial risk of the
venture in exchange for more control over the employee's work.

How an Employee Works

An employee is a type of worker that an employer can hire to do a specific job. Unlike contractors, which have
more freedom than an employee, an employer controls what an employee does and exactly how it will be
done.

The employee is hired by the employer after an application and interview process results in their selection as
an employee. This selection occurs after the applicant is found by the employer to be the most qualified of their
applicants to do the job for which they are hiring.

What is an employee?

An employee is someone that another person or company hires to perform a service. Business owners

compensate employees for their work to grow and maintain their business. Employees typically have a

specified pay rate and a written or implied employment contract with the party they work for. However, some

hired workers are not legally classified as employees and have a separate tax classification. The IRS has three

main standards when determining who qualifies as an employee:

1. Control of finances: If you control the business aspects of someone’s job, such as how and when they

are paid, they could be considered an employee.

2. Control of behavior: Employees are given instructions about policies to follow, when to do work,

where to do it and where to get supplies and equipment. Having to train workers could be a sign that

they’re your employees.

3. Business relationship: The type of business relationship you have with a worker influences their

employee classification. Providing contracts and benefits can both indicate an employee-employer

relationship. If you hire someone to fill an essential role with the understanding that they’ll keep working

for you indefinitely, they’re probably an employee.

You can hire multiple classifications of workers depending on the needs of your company. Having different

types of employees on your team allows you to adjust your staffing needs based on demand. As a business
owner, you should understand what differentiates each type of employee so you can stay in line with labor and

tax laws. An employee’s classification determines the following:

 Eligibility for overtime pay

 Entitlement to health insurance and other benefits

 Tax status

 Legal protections