UNDERSTANDING ROLE OF CHIEF EXECUTIVE OFFICER

The Position of Chief Executive Officer is considered to be the senior most /head of management.  His responsibilities include long achievement of goals, both long terms and short terms, as set by the shareholders.  He reports to the Chairman of he Company, shares their vision, accordingly devise strategies and policies for the company, develop the team and accordingly execute these policies to reach at the ultimate goals.  Looking at the importance of  role of Chief Executive Officer, multinationals before company formation  in India,  select the person who is going to be Chief Executive Officer so that they can involve him also during the process.

We can broadly define the role of Chief Executive Officer as under:
–                     His prime responsibility is to formulate and implement the company policies devised with an objective to enhance shareholders’ value.
–                     Implementation of strategy and policies through his team/subordinates
–                     Responsible for day to day operations of the company
–                     Setup business India and develop it further as per expectations of shareholders.
–                     Work as a conduit/connection between the Board and management of the company
–                     Preparation of Financial Budget and Operating Plan, for the year as well long term
–                     Monitoring the financial and operating results of the company.
Human Resources
One of the generally unpublished goal of Chief Executive Officer is to thoroughly study the thinking of the Board/shareholders about the culture of the company.  CEO has to bring this down to the bottom.
He needs to select his team of senior executives, which will fit in the defined culture.  These executives can form their teams as per cultural guidelines.
SKILLS REQUIRED
Should have very good knowledge of the sector/area in which company is operating.
Management skills not limited to Human Resources, Finance, Budget preparation, quality improvement processes and fund management.
LEADERSHIP
It is the  most important attribute of a Chief Executive Officer.  CEOs having strong leadership qualities have been very successful in leading their companies in achievement of goals and objectives.  Leadership  is a process in which CEO provides the direction to a group of executives to achieve the common goal of the company.  His job is to organize the activities of the company, overview day to day operations.
DECISION MAKING
An important skill, which a successful Chief Executive should have, is decision making.  Setup business India, due to its cumbersome tax procedures, legal system, diversified cultures has more importance of this skill.
PROBLEM SOLVING
During the course of business, a number of situations come when CEO has to come on front to resolve problems.
TEAM MANAGEMENT
CEO, while managing a team has to take care of a few points such as he should refrain from doing any favor to any of its members, this may affect the creditability of the leader/CEO.
Another attribute which is to be taken care is that a leader should give due credit to his team members whenever they achieve/accomplish something.  If it is a team achievement, all the members should get the credit or whosoever deserves.  Multinational while foreign company registration in India get their trained on cross country cultures, way of working,  most effective  and workable motivational tools.
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Author Bio:
Varun Bhatia is currently working with Corporate Leaps, he is the author & publisher of this article about “UNDERSTANDING ROLE OF CHIEF EXECUTIVE OFFICER”. He is business professional and written many articles on various topics like business, banking, finance, accounting and human resources and these articles are very popular in Business industry.