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Corporations are crucial to society s well-being. Yet, not many have chosen to adapt themselves to the expectations of employees and the society at large. Prof. Ram Mohan identifies the three main problems that ail companies and illustrates the ways in which these can be combated. Most companies are still run from the top and make very little attempt to involve employees at the lower levels in decisionmaking. Executive compensation has spiralled steeply in recent years because the process of determining it is seriously flawed. Boards of directors are ineffective and have abetted the cult of the charismatic CEO who is expected to work wonders. Rethinc contends that the solution lies in the near-total dismantling of hierarchy or the creation of a bossless organization. In such an organization, the structure is flat, employees operate through self-driven teams, there is peer review, power rests on one s contribution and not one s title and the organizational purpose goes beyond the making of profit, and several other features. Once all this is done we will have an achieving organization that is also a humane organization in which the employees are raring to get to work every day.
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Prof. Ram Mohan, professor of finance and economics at IIM Ahmedabad, has donned several hats management consultant, financial journalist, investment banker, academic and independent director on company boards and has also served on RBI and SEBI committees. This is his sixth book.Review:
This is a wake-up call to the corporate world in general and corporate India in particular to walk the talk on corporate governance. --M. Damodaran, Former Chairman, SEBI
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