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

Think of them like a military ship’s captain. Each personnel section of the ship (steering, supplies, weaponry, communications, etc.) has its own leader, in charge of controlling and making sure their areas work well. However, the ship also has a captain who’s job involves getting all of the subsections to work together, charting overall courses for the ship, and communicating with other ships or the captain’s bosses.

The CEO is similar. They make sure all of the different parts of the company mesh well together, they decide upon and chart business plans and goals, and they communicate with shareholders, other companies, and the government.

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