Chief Executive Officer Roles and Their Effects on Large Corporations
The Chief Executive Officer is responsible for the success or failure of the company. They are responsible for the operations, marketing, strategy, financing, and the creation of company culture, human resources, hiring, firing, and compliance with safety regulations, sales, etc.This all falls on the CEO’s shoulders.
The CEO’s main function is to set a strategy, vision and values for the company. The senior management team can help develop this strategy. The CEO ultimately sets the direction the company needs to move forward with, the markets they need to get involve in and the strategy of how to get involved in the business.
The other function of the CEO is to build structure. They must understand that the work gets done through the people, and people are profoundly affected by culture. A place to work that is unsafe and has bad working conditions can deter people from wanting to work there and the high performers will relinquish from coming to work for this company.
The other function of the CEO is to hire, fire, and lead the senior management team. They, in turn, hire, fire, and lead the rest of the organization. The CEO must be able to hire and fire non productive workers and must also keep the senior team members working together.
The CEO also must allocate the capital appropriations and set budgets within the firm. They have to decide what projects to support and the strategy to ramp up the projects to succeed.
The vision of the CEO must be understood by the whole organization in order for it to have some power and concreteness so the people set their goals to comply with the vision.
The effective mission statement basically answers one question: How do we intend to win in this business? (Welch, 2005, p.14) The companies that make the choices about people, investments, and resources and prevent them from failing are the companies that will succeed. The profitability is the key. The mission statement must be bold and improve the quality of life locally, nationally and internationally.
The effective mission statement gives people a sense of direction to profitability and the inspiration to feel they are part of the bigger part of the goals of the business. Effective mission statements balance the possible and the impossible (Welch, 2005, p.15). Setting the mission statement is top managements responsibility to set the goals of the company every year. The mission statement represents the enduring character, values, and purpose of the organization in the present work place.
The strategy of the company follows the mission and vision statement and is an assessment of the internal and external environment. A strategist can then select appropriate strategies or plans of action for his or her organization (Achua & Lussier 2010, p. 427). The strategies of companies include such actions as...