Replicating the Functions of a Corporate CEO: Authenticity and the Grading of Performance

Precha Thavikulwat, Bosco Wing Tong Yu

Abstract


We replicated the functions of a corporate CEO in a game of 160 episodes and five rounds where every participant has an opportunity to be CEO of a new investment company for at least one round. We explain the incentive system of the game, the roles available to participants, the privileges and duties of the game’s CEOs, and the basic, progressive, and log methods of linking performance outcomes to points towards grades. Data from a one-semester administration of the game to a population of 32 undergraduate students show that the frequency distributions of performance scores are as expected, and that the three performance measures of the game, namely lifespan extension, relative shares sold, and logged relative profit, are correlated with each other. The results suggest that the game is authentic in replicating the functions of a corporate CEO, thereby allowing participants to practice formulating corporate strategies, making presentations to investors, executing strategies by acquiring and disposing of business operations, and employing executives to manage subsidiaries.

Keywords


CEO; GEO; business policy; grading; incentive system; performance measure; strategic management

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Copyright (c) 2020 Precha Thavikulwat, Bosco Wing Tong Yu

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