Full Form of CEO :
Chief Executive Officer
CEO Full Form is Chief Executive Officer. CEO refers to the highest position in an organization or company. In other words, CEO is the senior most executive or corporate officer or administrator who is responsible for managing the entire organization and its profits. CEO normally reports to the director or board of directors. A CEO can also be called as the president or MD-Managing Director or chief executive.
A CEO in a smaller concern holds higher responsibility and participation which involves making major decisions for the business, hiring staff, and more. In bigger companies a CEO normally deals with the higher strategies of the company that directs the company towards its vision and mission, delegating other works to the ones reporting to him or her. To simply put, the role and responsibilities vary from company to company based on the size and type of organization.
CEO Full Form – Additional Information
A company cannot run on its own without able leadership. There are many elements involved in the growth of a company and some of them are a good vision for development, sound allocation of funds, carefully planned delegation of work and having efficient employees who strive to make the company a success.
In order to reach these goals of a stable and successful organization, the shareholders and the board of directors appoint a visionary who works towards achieving the goals. This person is none other than the CEO or Chief Executive Officer.
Who is a CEO?
A Chief Executive Officer or CEO is a person appointed by the shareholders and the board of directors of the company to plan high-level strategies in order to take the company on a higher platform in the competitive corporate world.
It is a very top ranking position in the company and in some cases is also known as the President or the Managing Director (MD). In a smaller establishment, the CEO may be involved in the daily activities of the company as well as a selection of the staff.
However, in the larger companies, the CEO’s responsibilities differ. Here he is only the policy maker and sets a vision for the company’s growth. The employees are the ones who carry this dream forward and turn it into reality by working along the lines of the plans set by the CEO. Thus, it is the CEO who is responsible for either the success or the failure of the company and is answerable for the status to the shareholders and directors.
A CEO, in short, can be termed as a role model for the managers and other employees and he guides them in following the company’s policies and targets.
Responsibilities of a CEO
To take a company to a greater height of success there needs to be a good futurist who can think ahead of times and foresee the company’s future. The person should also have the ability to make sound decisions for a stable and constant progress of the establishment and be accountable for its failures and success. CEO is responsible for planning and executing high-level tactics, undertaking all key corporate decisions, managing the finances as well as general operations of the company. He is the main link between the board of directors and the business operations.
In order to facilitate proper functioning of the company, the CEO appoints managers and executives at different levels and delegates them the duty of getting the desired results from all the employees as per the set goals. He distributes the funds of the company in profitable ventures with prior consultation with the board of directors.
The CEO has the authority to relieve the managers and executives of their duties for underperformance. The managers, on the other hand, hire and fire the subordinate staff if they fail to deliver the set targets. A CEO should select his team wisely so that there are no lapses in the performance and target achievement. He should be effective in communicating his vision to the team of managers. This is essential for the executives to get the work done in a flawless manner from the employees.
A model CEO
For a company to grow and prosper there should be a very conducive environment so that the employees have the motivation to give their best performance. A dynamic CEO is a role model for the managers and executives, who take a cue from him on how to develop the business. The enthusiasm of the managers rubs on to the employees, who strive hard to get the desired results.
Besides this, CEO also sets up standards for dressing, work culture, etc. The employees follow the examples set by the CEO. They learn the importance of communication as well as a choice of the right persons. His reactions to the mistakes of the employees suggest the degree of risk taking involved in the work process. The Hire and Fire stand gives an idea about what is tolerated and what can be avoided.
Rewards for a particular work establish the fact that the work has been accomplished as per desired standards. These may seem simple and little things, but they matter the most. Through this functioning, a successful work empire is established and the CEO turns out to be the right candidate selected to be at the helm of the company.
Things that a CEO should avoid:
- Arrogance: Agreed that a CEO is at the top most level in the company. However, this fact should not give him/her a bloated ego. Arrogance is the first step of a person’s downfall and very soon the CEO realizes that he/she is the least liked person and it jolly well affects the future of the company. This is because, since the employees do not take kindly to this boss, they are not very keen on executing his orders properly. This, in turn, affects the performance and growth of the company.
- Blame game: No one is perfect. Let’s admit that. However, it does not give the “boss” the right to blame the subordinates for his own incompetence. As he is the top boss, the CEO may feel that his decisions and judgments are the ultimate words that can never be wrong. Nonetheless, when his plans fall flat and his vision seems far from profitable, then it is very difficult for him to admit that he failed somewhere along the line of decision making. In fact, he finds it easier to blame the managers and employees for not doing their assigned tasks well. Blaming the employees or the market conditions for the failure is no valid excuse since these are the very responsibilities of a good CEO – to hire a competent team to achieve goals and to anticipate the market scenario in advance and plan the strategies accordingly.
- Stop learning: Progress comes with constant learning and innovation. The CEO should never stop learning. Daily activities are the base of a project and if one keep self-updated with the daily routine, it is easier to follow the shortcomings and rectify them in a timely manner.
Signs of a good CEO
A good CEO is a good visionary and a person with a sane analytical mind. He should envisage the company at the top of the market, ahead of the competitors. For this, he should carefully select his team of managers and executives and they, in turn, should appoint competent workforce to realize the goals. He should be clear and effective in communication so that there are no confusions while executing the plan. Since the crucial responsibility of finance management is entrusted to him, the CEO should study the market and invest in the most profitable venture and create sound business partnerships. Success or failure – he should take it in his stride and should not shirk responsibility in case of failure, nor get egoistic on being successful.
