A dynamic corporate culture involving company events, rituals and traditions is thought to
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → enhance loyalty and group solidarity
Option (1) raise salaries and reduce work stress — Incorrect. Corporate culture aims to bind employees to the firm, so pay and workload lie outside its aim. In fact, the new high-flying professionals of the big cities have exorbitant salaries and highly stressful work.
Option (2) strengthen unions and collective bargaining — Incorrect. Unions and collective bargaining are the workers' own means of pressing demands on management. Corporate culture is a management tool that builds attachment to the company itself.
Option (3) sharpen competition and individual output — Incorrect. Corporate culture as a whole seeks to increase productivity and competitiveness, at the level of the firm. Its company events, rituals and traditions are linked only to employee loyalty and group solidarity, with no link to sharper competition among employees or to individual output.
Option (4) enhance loyalty and group solidarity — Correct. Company events, rituals and traditions give employees a shared identity. Such a dynamic corporate culture is thought to enhance employee loyalty and promote group solidarity.
NCERT (2026-27): “Corporate Culture |