Linjuan RitaMen investigated how CEO credibility, which includes expertise and trustworthiness, impacts the employees’ perception of organizational reputation.
Since the CEO is the face of the company, he/she highly impacts the firm’s image internally and externally. Through leadership and power, a CEO is able to influence the perception, attitude, and performance of the employees too. This means that “there is a natural link between the CEO and the organization.”
To start with, perceived organizational reputation, according to the researcher, is the overall employee evaluation of the business he/she works for over time. This concept includes different notions such as “emotional appeal, products and services, financial performance, vision and leadership, work environment, and social responsibility.”
The study’s findings revealed that the higher the level of CEO expertise is, the more the workers will perceive him or her as “a source of valid assertions, and as possessing the necessary skills and knowledge for his or her position”. Also, the more trustworthy he or she is, the higher the degree of employee confidence and acceptance towards the CEO and his/her messages is. All of this, ameliorates employee evaluation of the company; hence, a better image, internally and externally.
Videlicet, if the workers perceive their CEO as competent, knowledgeable, and qualified, they will assess organizational reputation more favorably. If they recognize their CEO as a trustworthy and honest leader, they will evaluate their firm positively too.
That’s why it is the communications coaches’ duty to help a CEO establish a strong, credible image in the eyes of his/her internal public, i.e. employees, who, consequently, will “spread positive workplace stories to outsiders, to shape a favorable internal and external organizational reputation.”
Source
Men, L. R. (2012). CEO credibility, perceived organizational reputation, and employee engagement. Public Relations Review, 38(1), 171-173. https://www.researchgate.net/publication/257181736_CEO_credibility_perceived_organizational_reputation_and_employee_engagement
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