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Organizational CEO: Performance & Evaluation Methods

The case study questions are from the course HRM 538 - Performance Management.

"CEO Performance"
1. Examine the process of CEO performance management and make at least one recommendation for improvement.
2. From the e-Activity, evaluate CEO compensation in your selected industry (which is Administration) and argue whether or not the CEOs are compensated fairly.(Use the Internet to research CEO compensation in the industry chosen which is Administration). Add references.

"CEO Evaluation"
1. Critique the process for evaluating the CEO's performance within an organization. Provide suggestions for improvement.
2. Analyze the barriers to effective implementation of the CEO evaluation. Provide insight to why these barriers occur and possible solutions. Add references.

Each question is answered in more than a paragraph, with supporting detail. There are also references provided for each answer.

Solution Preview

"CEO Performance"
1. For most organizations, the structure includes a Board or some other oversight body (such as City or County Councils or Board of Commissioners) that engage in performance management of the CEO. The process typically occurs on an annual basis, comparing the organization's performance to the Board's expectations. "Performance" may include several factors, such as financial stability, expansion ventures and increased hiring. Other areas may include communications (internal to employees and externally to shareholders) and leadership ability. The process is usually concluded by a discussion on areas the Board would like to see performance strengthen and outlining criteria for future evaluations. One recommendation to improve the process is the addition of "360" feedback. The Board could solicit input from those who report to the CEO, asking for input on how the CEO is perceived as a leader. This should be conducted in a confidential manner so employees feel free to provide honest feedback. This helps to add a "personal" element in performance review; rather than simply comparing a CEO's performance solely on numbers.
Reference on process: ...

Solution Summary

This solution addresses four textbook questions about a common performance management process for an organization's CEO and provides improvement concepts. Next, the solution analyzes methods for evaluating CEO performance, discussing barriers to an effective process and how to overcome those barriers. The solution is over 700 words with 5 references.