Compare and Contrast How the Responsibilities of the Ceo of a Large Company Differ from Those in a Small Company? Essay Example
With the rapidly growing demand of goods and services of the public, an increasing number of corporations emerge with different sizes from giant firms to individual businesses. The responsibilities of a CEO, as a result, have been classified by a large amount of research to help to improve management efficiency. It is essential for CEOs to recognize their specific responsibilities in different sizes of companies, which are to be compared and contrasted in the following three phases, management models, obligation sharing and social responsibilities.
For CEOs in both large and small companies, the responsibility lies in choosing and following management models which set a proper framework for the companies. A management model is defined as the CEOs’ choices on managing the objectives, business activities and resources (Birkinshaw & Goddard, 2009). Every CEO should consider choosing and following the models as a primary responsibility because according to Birkinshaw and Goddard (2009), a management model involves fundamental principles which shape the specific management behaviors and show how the company will be run. Birkinshaw and Goddard (2009) also give an example that reveals how successful the small corporations will be with the proper model. Happy Computers Ltd. was a failure as a small business. Henry Stewart, the CEO, then built up a specific model which contains the management principles: managers are chosen by abilities and are assessed by employees openly. As a result, client satisfaction rose up and the firm’s revenue doubled. It also makes sense in large companies. Rather than shareholders’ value, end-users’ satisfaction is set by the CEO of Google as the primary goal in the management model. The change has made the firm the most successful search engine company (Schmidt cited in Birkinshaw & Goddard, 2009). These two examples demonstrate that setting an appropriate management model for companies can create more possibilities of increasing
For CEOs in both large and small companies, the responsibility lies in choosing and following management models which set a proper framework for the companies. A management model is defined as the CEOs’ choices on managing the objectives, business activities and resources (Birkinshaw & Goddard, 2009). Every CEO should consider choosing and following the models as a primary responsibility because according to Birkinshaw and Goddard (2009), a management model involves fundamental principles which shape the specific management behaviors and show how the company will be run. Birkinshaw and Goddard (2009) also give an example that reveals how successful the small corporations will be with the proper model. Happy Computers Ltd. was a failure as a small business. Henry Stewart, the CEO, then built up a specific model which contains the management principles: managers are chosen by abilities and are assessed by employees openly. As a result, client satisfaction rose up and the firm’s revenue doubled. It also makes sense in large companies. Rather than shareholders’ value, end-users’ satisfaction is set by the CEO of Google as the primary goal in the management model. The change has made the firm the most successful search engine company (Schmidt cited in Birkinshaw & Goddard, 2009). These two examples demonstrate that setting an appropriate management model for companies can create more possibilities of increasing