Final answer:
The people who direct the activities of others in an organization are known as managers. The board of directors is meant to protect shareholders' interests, but top executives often have a strong influence over board composition. A clear chain of command exists within organizations, with each level responsible to the one above it, up to the CEO and board of directors.
Step-by-step explanation:
Identifying Organizational Leaders
The individuals who direct the activities of others in an organization are typically known as managers. Managers hold the responsibility of overseeing employees and ensuring that the company operates efficiently. The role of the manager can vary depending on the size and structure of the organization but generally includes planning, organizing, leading, and controlling.
In a theoretical sense, the board of directors is established to ensure that a firm operates in the best interests of its true owners, the shareholders. Despite this, it is often the case that the top executives, who manage the day-to-day operations of the company, largely influence who gets to be on the board. Such a situation can sometimes lead to a conflict of interest if the executive team prioritizes their own objectives over those of the shareholders.
When considering the hierarchy of authority, the chain of command is an important aspect. This hierarchical structure defines superior-subordinate relationships throughout the organization, ensuring that each level answers to the one above, up to and including the CEO who answers to the board members, who are accountable to the shareholders.