Assignment No 02 CG

The document discusses the board committees at Care International Hospital. It describes the three main committees: the Audit Committee, Human Resources Committee, and Executive Committee. It provides details on the members and roles of each committee. However, the committees were not effective due to issues like the chairman maintaining an oppressive management style and lack of independent directors. To improve effectiveness, the summary recommends separating the chairman and CEO roles, adding independent directors, establishing formal policies, and developing a financial recovery plan.

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Assignment No 02 CG

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CAPITAL UNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF MANAGEMENT AND SOCIAL SCIENCES

DEPARTMENT OF BUSINESS ADMINISTRATION
MBA PROFESSIONAL PROGRAM (June-2020)

ASSIGNMENT NO 02

CASE STUDY
CARE INTERNATIONAL HOSPITAL

SUBMITTED TO

SIR DR SAFDAR ALI BUTT

SUBMITTED BY

MUHAMMAD ISHFAQ BMBE183015

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QUESTION NO 01:

What role was being played by various board committees?

ANSWER:

Care international hospital has three main board committees:

 Audit committee
 Human Resource Committee
 Executive Committee

Audit Committee Consist the following:

 Mahtab Ahmed, CFO, Chairman of Committee
 Elaine East Bourne, nominee non-executive director, member
 Dr Alivi, Independent non-executive director member

Its Human Resources Committee consist:

 Talha Abbas, personnel Director, Chairman of the committee
 Dr Bazid, independent non-executive director
 Mr. S Hussain, company secretary and director

Its Executive committee consist of:

 DR Arbab Ahmed, Operations director, chairman of the committee
 Dr Bazid
 Dr Chauhan, independent non-executive director
The executive committee has been given a free power by the chairman to approve the routine
operational ,they has power to check out the daily routine day to day affairs, the chairman is not
the member of any of these committee ,but he find enough time to attend virtually all their
meetings as an observer

Mr. Hussain serves as secretary to all these committee he joined the CIH several year ago as an
administrative assistant but caught the eye of the chairman though his loyalty and hard work he
obtained his degrees during the service of the company and promoted Admin Manager.

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QUESTION NO 02:

How effective were these committees?

ANSWER:
 The board and its committee should be restructured to ensure that it has adequate number
of independent non- executive directors who are professionally competent to serve on the
board /committee of a company running a high-class hospital.
 The office of the chairman and chief executive officer should be separated.
 The company must out with formal policies on corporate governance and corporate social
responsibility, and ethical standards.
 A formal plan be prepared and submitted to the bank showing how the corporate expects
to come out of its current financial crisis.

QUESTION NO 03:

IF they were not effectiveness, who is the blame?

ANSWER:
Dr aftab Ahmad has maintained an oppressive style of management over the year. Though he is
very honest and hardworking person, yet he believes that the board should not waste time
deliberating on matters that he has already decided on. He expect loyalty from the board member
which in his terms mean agreeing to whatever he proposes. He has therefore been very selective
in his choice of directors, not allowed any one any attitude different from him, the natural power
that he enjoys as the founder, chairman and chief executive officer of the company and generally
a very influential person in the city prevents all the directors from any attempts to differ from
him at the board meetings

Though he has been able to successfully run the company and achieve growth over last two
decades, but his democratic style has often resulted in biased decisions that were the inimical for
the company. His refusal to accept that contradictions and dissimilar views and attitudes are
good to generate entrepreneurial spirit among the manages has meant that no worthwhile
suggestion for improving the company has ever come from the board, he alone has to do all the
thinking and planning for the company So as the result the company not improve due to the
controversial behavior The other is poor financial controls .convergence of all financial powers
in the hands of just two persons, the chairman and his younger brother, Mahtab Ahmad and the
company s director finance This is a big company in health care and yet it has no female
representation on the board and senior management (Parvez pasha GM,).

QUESTION NO 04:

How the effectiveness of the board committee can has improve?

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ANSWER:
The effectiveness of the board committee is totally depend upon the members of committee as
they loyal to their work as company improve their condition so the effectiveness of the
committee is improved by taking following steps The board and his committee should be
reframe to ensure that it has adequate number of independent non-executive directors who has
professionally capable to handle the board committee of a company running a classy hospital
The office of the chairman and the chief executive officer should be separated The company
must come out with the formal policies A formal plan should br prepared and submitted to the
bank to showing how the company expects to come out of its current financial crises. Formal
committees of the board be set up specifically to look after Audit, Remuneration of all the
employees not just the director and senior managers and the corporate social responsibilities.

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