What would a CEO try to do if his/her performance evaluation is based on net operating...

What would a CEO try to do if his/her performance evaluation is based on net operating income? Why?

Expert Solution

SOLUTION

if a CEO performance is evaluated on the basis of net operating income he/she must bring the following factors in focus

1.LEADERSHIP TRAITS -How well he motivates and fill energy in Organization .

2 STRATEGY - In todays Competitive war like business environment perfect strategy is very important .So its very important how efficiently he implement strategy .

3. HUMAN RESOURCE MANAGEMENT - Whether he is putting right person in right job.

4. OPERATING MATRICS - All the key funtions of organisation like sales , customers satisfection are properly executed .

5. EXTERNAL RELATIONSHIP - How well he engage with customers , suppliers and stake holders .

REASONS FOR DOING SO

Net operating profit could be the measure of evaluation of CEO performance but it is not perfect and it will provide short term analysis only .. Net operating profits may be result of some specfic market , economical factors but it is not measure of CEO administrtive capabilities . For example net operating income is high in any year due to some factors but if CEO admintrative capabilities are not efficient is shall be fatal for long term suviaval of oraganisation .

NOTE - PLEASE UPVOTE IT SHALL BE A GREAT FAVOR THANKS

ekkarill92 answered 2 years ago

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