(c) That the board adopts transparent procedures and practices and arrives at decisions on the strength of adequate information.
(d) That the board has an effective machinery to sub-serve the concerns of the stakeholders.
(e) That the board keeps the shareholders informed of the relevant development impacting the company.
(f) That the board effectively and regularly monitors the functioning of the management team.
(g) That the board remains in the effective control of the affairs of the company at all times.
Q.4. What do you mean by corporate mission statement?
Ans. A corporate mission statement is a statement about the purpose of existence for a company and its longterm vision. The mission statement should guide the actions of the organisation, spell out its overall goal, provide a path and guide in decision making.
Q.5. What is code of ethics?
Ans. A code of business ethics often focuses on social issues. It may set out general principles about an organisation’s belief on matters such as mission, quality, privacy or the environment. The effectiveness of such code of ethic depends on the extent to which the management supports them with sanctions and rewards. The code of ethics links to and gives rise to the code of conduct for the employees.
Q.6. What is TQM?
Ans. TQM (Total Quality Management) is an approach to business which looks critically at the products and services of a company in order to obtain complete customer satisfaction. The approach is called total because it involves all the functions the company does and all its processes and all of its employees at every level in the company all the time.
Q.7. What are 7M’s in TQM?
Ans. The 7M’s in TQM are:
(a) Mind, (b) Motivation, (c) Mission, (d) Money, (e) Machines, (f) Material, (g) Manpower.
Q.8. What do you mean by organisational culture?
Or Define organisational culture. (2011)
Ans. Organisational culture is a concept organisational studies and management which describes the pscyhology, experiences, beliefs and values (personal and cultural values) of an organisation. It has been defined as the specific set ofvalues and norms that are shared by the people and groups in an organisation and that controls the way they interact with each other and with the stakeholders outside the organisation.
Q.9. What are the drawbacks of organisational culture?
Ans. The drawbacks of organisational culture are:
(a) Barrier to change and improvement.
(b) Barrier to diversity.
(c) Barrier to cross -epartmental and cross–organisational cooperation.
(d) Barrier to mergers and acquisitions.
Q.1O. What are the various myths about organisational culture?
Ans. The various myths about organisational culture are
(a) Organisational culture is same as organisational climate.
(b) Culture is same as group thinking.
(c) Culture is same as organisation.
(d) Culture is a social structure.