CEO – Understanding the Roles and Responsibilities

The full form of CEO is Chief Executive Officer. He is in the dignified and highest position in an organization. The CEO has multiple roles to play in an organization. They craft out the plan, implement it, and review it periodically to check if the goals are going in the right direction.

They make the short-term and long-term goals for the company and hold full accountability to meet these goals within the stipulated time frame.

They report to the Boards of Directors, and along with them, they scrutinize the position of the business and find out the areas that need improvement.

They look into matters related to every domain of the business – technology, finance, marketing, human resource, operations, and many more.

Though the responsibilities of the CEO depend upon organization to organization, the primary motive of the CEO is to take an organization to a higher level constantly. They take care of the company’s performance while keeping the customer, stakeholders, and employees in mind.

What are the supervisory responsibilities of the CEO?

Managing Operations

The CEO is responsible for handling the work and performance of every department. For example, obsolete technologies are useless for the business. The technological requirements need time-to-time up-gradation.

So, they are responsible for introducing the state-of-the-art technology that makes them stand out in the competition.

Setting Goals and Objectives

The CEO sets both – short-term goals and long-term goals for the business. They craft the business’s mission statement and where they want to see the company in the coming future.

Apart from setting the goal, they review the performance and make the desired changes in the business to achieve the goal.

Delegation of authority

The role of the CEO involves meeting the objective of an organization while motivating employees and delegating work to them.

It involves considering the employee’s decisions in an organization and holding them accountable for their assigned tasks.

Communications and Cooperation

It is important to establish open communication among the employees and different departments. The CEO makes stringent policies and has to create a cordial atmosphere in an organization where people can express their concerns.

What are the duties of the CEO?

Apart from the supervisory responsibilities, the CEO has various other duties to perform, without which the business cannot operate smoothly. The following other duties are:

  • It has to constantly work with the board of directors to establish the goals and objectives of the business. Upon framing the policies and procedures, they need to get approval from the reporting authority.
  • They have to review the company’s performance periodically and represent them to the Board of Directors.
  • They have to allocate the financial resources adequately and work on ways to raise funds for the upcoming projects.
  • It reviews the return on investment and checks whether it has met the company’s mission. In case of unsatisfactory performance, they have to look for Plan B.
  • They ensure that the organizations meet all the rules and regulations designed by the Government.
  • It represents the organization to the customers, stakeholders, employees, and Government. They also handle the grievances of external sources.
  • They assess the risk and take steps to reduce the risks.
  • They also have to work as a strategic advisor in case of negotiations, mergers, and joint ventures.

Essential traits of the CEO

Leadership skills

The CEO needs to have strong leadership skills. The employees of an organization report to the CEO, but the CEO also has to address stakeholders and customers.

They need to have a pleasing personality and the ability to make people follow them.

Strategic Mindset

Thinking out of the box is essential for an organization. The CEO needs to have a strategic mindset: they have to be innovative and creative and produce something different that no other organization offers to the customers.

Problem Solving Ability

The CEO has to deal with multiple tasks, and during that, they face challenges. The CEO needs to have the problem-solving ability so that they can quickly deal with the problem with practical outcomes.

Communications Skills

Communication is a two-way process where one needs to listen to the views of others patiently. The CEO needs to have exceptional high communication skills where they not only express their concern but also listen to others.


  • The educational requirement is a bachelor’s degree in business or MBA from a renowned university.
  • The CEO should have sound knowledge of the industry, and they need to have not less than ten years of experience.
  • They should know how to handle a large team. Also, they have to manage and train large teams.
  • As the role of the CEO is multitasking, they should know how to work in a high-pressure environment.

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