Why do bigger companies need a CEO?

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Why do companies need people in charge of the entire company? I get that certain parts of the company (i.e. production, shipping, marketing, etc) need a leader / someone who keeps an overview. But why do they need someone at the top of the company, who’s just there to.. be someone to represent the company? In most cases I’ve heard of, the CEO is in charge of pretty much everything, but barely knows anything about every individual thing the company does. So why not have no CEO, and instead just leaders of individual groups? Why does someone have to be on top of everyone?

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Anonymous 0 Comments

You’ve hinted at it in your question. If each department has a head, do you really think they can efficiently come to conclusions on key decisions amongst themselves? For most large organisations, the top level of leaders is a den of snakes, everyone out for themselves, horse trading, bullying, back stabbing and all think they know what’s best for the organisation, yet they can’t all be right. You HAVE to have a single arbitrator over that group, imho. Human nature will always out, having one chief really simplifies things so they can focus on leading their departments

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