Compare and Contrast How the Responsibilities of the Ceo of a Large Company Differ from Those in a Small Company?

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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 competitiveness; as a consequence, CEOs in all sizes of organizations need to take this responsibility seriously.

Corporations of different sizes follow various management models to meet the needs for efficiency. One of the management models, the Planning Model, which suits giant firms, is operated with clearly defined management processes and strict hierarchical decision making (Birkinshaw & Goddard, 2009). Since this model can function properly only in the industry with mature business and a stable and predictable circumstance, CEOs should stress the obligation on acting as master controllers to sustain bureaucratic and hierarchical elements (Birkinshaw & Goddard, 2009). The Quest Model, whose feature is simplified management levels, on the other hand, is commonly suitable for small businesses in growth stages. In order to inspire employees to present personal approaches to reach objectives, the CEOs would not restrict the employees’ preferences and creativities in forming methods of achieving the goal. To put it another way, employees are encouraged to be involved to quest better management activities. Therefore, in this field, CEOs’ responsibility in large companies is controlling abilities whereas those in small businesses focus on encouragement strategies.

Obligation sharing is another factor that should be focused by CEOs in all sizes of companies. Because of the widely emerged hierarchy system, in which managers are classified into senior managers, middle managers and first-line managers, CEOs need know their specific responsibilities among the managers. CEO is the most significant position in a company because it is admitted that besides specific obligations allocated to them such as marketing, production, finance management, and unlike lower managers, CEOs also need strategies and leadership (Akhouri cited in Khandwalla, 2004). These are the primary responsibilities of CEOs and more obligations are required to be shouldered by them due to the hierarchical...
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