Learn how to be a CEO and along with its advantages and disadvantages.
CEO is the highest-ranking person in the company and holds greats power and responsibility regarding the working of the company. He is responsible for taking various most significant decisions in the company. However, the scope of responsibility held by CEO depends on size of the organisation. Along with this, the structure of the company also affects the scope of responsibility of the CEO (Half, 2019).
How to become a CEO: In larger size organizations, CEO delegates its work responsibilities to other managers in organizations and focuses only on important and routine tasks. However, becoming a CEO requires huge confidence and leadership skills. Along with this, various other skills are required for becoming the CEO of company. Following steps highlight the process for becoming the CEO of the company:
Article Summary This article is helpful to learn about methods and techniques that how to be a CEO. Along with this, several advantages and disadvantages of being CEO is also elaborated in this article. This article is very helpful for understanding the roles and responsibilities of CEO in the organization. Some steps are also highlighted in this article that could help CEO in becoming successful in future.
Earning a bachelor degree: The first step to become the CEO of company is to earn a Bachelor degree in some fundamental area of business i.e. operations, management, economics and finance. Getting education helps in gathering confidence and leadership skills which is also must to become a CEO of the company. Also, various CEOs such as Tim Cook holds diverse technical skills (Stadler, 2019). However, gaining bachelor degree is not enough to become the CEO of the company. It is must for the individual to have several years of professional expertise. Further, it is optional for the individual to hold master degree in professional field.
Developing career path: Becoming a CEO in some large organization provides opportunity to the individual to develop their career path. Also, becoming CEO of the company provides on the job experience to the individual and enriches the skill base of individual ("How to Become a CEO: Definition Steps and Skills", 2019).
Personal characteristics and required skills: To become the CEO of company, individual is required to possess various personal traits and skills such as patience, communication skills, personality, leadership and managing ability, ethical behavior traits, etc. presence of management skills is must to become the CEO of the company as CEO is tasked with various managerial tasks in daily operational activities. Further, managerial skills are required in organization operations to encourage growth of the company. Also, CEO is required to have strong communication skills to provide for clear communication and to persuade team members in organization. In addition to this, CEOs are required to have strong decision making abilities to ensure that effective and timely decisions are taken to ensure growth of business in industry.
Thus, it has been identified that it is must for the CEO to have bachelor degree and diverse range of personal characteristics and skills to manage the working of organization in most effective manner. Along with this, becoming a CEO requires application for the job post and discussion of salary.
Advantages of being a CEO: Becoming a CEO is not an easy task but becoming a CEO provides various advantages to the individual. Following are some of the advantages of becoming the CEO of company:
Salary: CEO are at the top position in company and thus, earns the highest salary in company. Along with the basic salary, CEOs also earns various other compensation packages in the industry such as bonuses, incentives and other various pay packages. Also, CEO in companies gets various perks and benefits such as private planes, club memberships, luxury cars, personal travel etc.
Freedom: CEO of the company have the freedom to set their own schedules and define the strategies of organization. The CEO of the company holds the ultimate power to take all the important decisions in the company. CEO also holds the ability to delegate the tasks among other managers of company (Belcher, 2017). Whitney Keyes, CEO of WK productions also quoted that holding a position of CEO in the company offers the opportunity to set their own schedules, choose the type of clients according to their own preferences. .
Reputation: Holding the position of CEO in company provides reputation to the individual in the company as well as society. This provides valuable opportunity to individual to carry out various projects with higher reputation and acceptance from the members of society. Also, CEO in the company holds higher authority than other staff members in organization. CEO knows about the whole operations of company and is also more informed about the market conditions of business environment. Also, CEO holds complete information about the financial and operational position of business which increases the experience of individual.
Team work: CEO holds large number of people under him and every task is completed in team collaboration which creates higher harmony among the staff members of the company. Vic Mahadevan, the CEO of Punchh further quoted that “he loves team work in organization and also loves to motivate his team to meet the needs of customers.”
Disadvantages of becoming a CEO: Despite the number of advantages enjoyed by the CEO of company, there are various limiting points in becoming the CEO of company. Following list of points highlights the disadvantages of becoming CEO of an organization:
Pressure and criticism: The main limitation of becoming a CEO is higher work pressure and criticism from various lower level staff members ("Disadvantages to Being the CEO of a Company", 2019). This also results in loneliness being faced by CEO of the company. Lot of work pressure results in higher stress level being faced by CEO. Also, there is no one with whom CEO can discuss the problems in company operations.
Law suits: CEO may face various law suits in case of unethical behavior taking place in the organization and also in the case of manipulation in financial records of the company. Further, there is not always the win situation in the company. customers or ex-employees of the organization may post various negative comments about the working or behavior of CEO of company.
Face of the company: CEO of the company holds reputation due to the name of the company. however, the advantages hold by the CEO in company may turn out to be negative when the company faces financial set back.
Lot of paper work: CEO of Three girls media quoted that there is lot of paper work and hiring and firing duties involved in holding this position in company. Along with this, CEO of Sundara provided that he is also responsible for hiring new people in the organization.
Tight and busy schedules: The CEO faces huge problems due to its tight and busy schedules. CEO is responsible for various operations in company which causes huge burden upon the company (Morgan, 2015). Also, CEO has to ensure that all operations of the company are completed and managed in the limited time frame. Also, Keyes (CEO of WK productions) also provided that there are large number of e-mails received each day which becomes difficult to manage in limited time schedule.
Higher stress: Huge work burden upon the CEO of company results in higher stress and anxiety. Also, lot of work pressures results in various sleepless nights. Work pressure also distracts the CEO from their personal, family and societal life. Jonathan wasserstrum, CEO of TheSqaureFoot also quoted that being a CEO is highly stressful due to never ending list of number of tasks.