Previous Year Questions of XAT Decision Making – Free PDF for Download

Thursday, January 2nd, 2020


One of the most common suggestions that I give students who are preparing for XAT is that they should focus on Decision Making and give at least one hour every day to prepare for it in the last month. The easiest way to do it is to go through previous year papers. To make it easy for students, I decided to put all the previous year papers of XAT Decision Making in a PDF. You can download that PDF by filling up this simple form given below. Also, the entire question set is also available on this page for your viewing. While I have tried to be careful in copy pasting the answers, I might have made couple of mistakes. Do suggest edits via comments so that I can get that fixed.

Questions on Decision Making have been asked in XAT for quite a few years. However, their importance has gone up drastically since 2012. Prior to that, you could expect 8 to 10 questions on Decision Making in the Analytical Reasoning section. In 2012, Decision Making became a section of its own and if you were to look at it purely from a scoring perspective – it make the most important topic for a student who is planning to write the XAT. It so happened because Quantitative Aptitude, Data Interpretation, Logical Reasoning and Verbal Ability – none of them had a full section on their own. They had to share the limelight, so to say, with some other related topic. In 2012, there were 25 questions in the Decision Making section. It even had some questions which were of 1.5 marks instead of the standard 1. The XAT paper in 2013 also had 25 questions, although all questions were of 1 mark each. The XAT paper in 2014 had 24 questions.

These kind of questions require a logical approach and a clear understanding of the situation. It often requires going through large amounts of text and then logically interpreting the information presented. To put it in conventional terms, it is a combination of Reading Comprehension and Logical Reasoning and traditionally students who are good in these two areas tend to do well in the Decision Making section as well.

A good way to prepare for Decision Making would be to look at previous year papers. You can have a look at questions from XAT 2008 to XAT 2020 which would give you questions to practice. These questions will not only tell you your current level of understanding of the topic but if you analyze them properly, it can really make a difference to you final score.

Jump to a previous year XAT Decision Making Section

XAT Decision Making – 2008
XAT Decision Making – 2009
XAT Decision Making – 2010
XAT Decision Making – 2011
XAT Decision Making – 2012
XAT Decision Making – 2013
XAT Decision Making – 2014
XAT Decision Making – 2015
XAT Decision Making – 2016
XAT Decision Making – 2017
XAT Decision Making – 2018
XAT Decision Making – 2019
XAT Decision Making – 2020

While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course. The online coaching for Decision Making for XAT 2021 contains video solutions to all these questions, videos and presentations for basics concepts, and 100 new questions for practice.

XAT Decision Making Questions(2008-20)
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  • Decision Making for XAT 2008 – Previous Year Questions

    Set 1

    Answers Questions 1 to 6 based on the information given below.

    Mr. Rajiv Singhal, Chairman of the Board of Directors of Loha India Ltd., (a steel manufacturing company) had just been visited by several other directors of the company. The directors were upset with recent actions of the company president, Mr. Ganesh Thakur. They demanded that the board consider firing the president.

    Mr. Thakur, recently appointed president, had undertaken to solve some of the management-employees problems by dealing directly with the individuals, as often as possible. The company did not have a history of strikes or any other form of collective action and was considered to have a good work culture. However, Mr. Thakur felt that by dealing directly with individuals, he could portray the management’s concern for the employees.

    An important initiative of Mr. Thakur was to negotiate wages of the supervisors with each supervisor. In these negotiation meetings, he would not involve anyone else, including the personnel department that reported to him, so as to take unbiased decisions. After the negotiation, a wage contract would be drawn up for each supervisor. This, he felt, would recognize and reward the better performers.
    Mr. Thakur successfully implemented the process for most of the supervisors, except those working in the night shift. For them, he had drawn up the contracts unilaterally benchmarking the wages of supervisors of the night with that of the supervisors of the day shift.

    For several days, Ram Lal, a night shift supervisor, had been trying to seek an appointment with Mr. Thakur about his wages. He was disgruntled, not only over his failure to see the president, but also over the lack of discussions about his wage contract prior to it being affected. As a family man with six dependents, he felt his weekly wage should be higher than that granted to him.

    Last Thursday afternoon, Ram Lal stopped by the president’s office and tried to see him. Mr. Thakur’s secretary refused his request on the grounds that Mr. Thakur was busy. Infuriated, Ram Lal stormed into the president’s office and confronted the startled Mr. Thakur, with his demands for a better wage. Mr. Thakur stood up and told Ram Lal to get out of his office and express his grievance through official channels. Ram Lal took a swing at the president, who in turn punched Ram Lal on the jaw and knocked him unconscious.

    1. The most important causal factor for this entire episode could be:

    A. Trying to follow a divide-and-rule policy in his dealings with the supervisors.
    B. Inconsistent dealings of Mr. Thakur with supervisors.
    C. Paternalistic approach towards mature individuals in the organisation.
    D. Legalistic approach to employee problems.
    E. Inadequate standards for measurement of supervisors’ on-job performance.

    2. The situation with Mr.Lal could have been avoided if Mr. Thakur had
    1. Delegated the task of negotiation of wage contracts for night shift employees to Personnel department.
    2. Created a process for supervisors working the night shift so that they could have had opportunity to interact with him.
    3. Created an open door policy that would have allowed employees to see him without any appointment.
    4. Postponed the decision of wage revision for supervisors in the night shift for two months, since supervisors were rotated on different shifts after every two months.

    The option that best arranges the above managerial interventions in decreasing order of organisational impact is:
    A. 4, 2, 3, 1
    B. 4, 3, 2, 1
    C. 4, 3, 1, 2
    D. 4, 1, 2, 3
    E. 2, 3, 1, 4
    3. The most likely premise behind Mr. Thakur’s initiative regarding individualised meetings with the supervisors seems to be

    A. Employee related policies should allow scope for bargaining by employees.
    B. Involvement of company’s president in wage problems of employees will lead to a better goodwill towards the management among the workers.
    C. Individual agreements with supervisors would allow the management to prevent any possible collective action by the supervisors.
    D. Management will be able to force supervisors to accept lesser wages individually in this way.
    E. He would be able to know who the trouble makers in the plant are by interacting with the supervisors.

    4. Out of the following, which one seems to be the most likely cause of Ram Lal’s grievance?

    A. His disappointment with the management’s philosophy of having one to one interaction as the supervisors were in a way being forced to accept the wage contracts.
    B. His being in the night shift had worked to his disadvantage as he could not interact with the management regarding his problem.
    C. He was not allowed to meet chairman of the board of directors of the company
    D. Employment in the night shift forced him to stay away from his family during the day time and therefore he could not interact with his family members much.
    E. All of these.
    5. Apart from the supervisors working in the night shift, executives of which department will have most justified reasons to be disgruntled with Mr. Thakur’s initiative?

    1. Production department – for not being consulted regarding the behaviour of the supervisors on the shop floor.
    2. Finance department – for not taken into confidence regarding the financial consequences of the wage contracts.
    3. Marketing department – for not being consulted on the likely impact of the wage contracts on the image of the company.
    4. Quality control – for not being able to give inputs to Mr. Thakur on how to improve quality of steel making process.
    5. Personnel department – for it was their work to oversee wage policies for employees and they had been ignored by Mr. Thakur.

    A. 1 + 2 + 3
    B. 1 + 4 + 5
    C. 1 + 2 + 5
    D. 1 + 3 + 4
    E. 3 + 4 + 5

    6. Which of the following managerial attributes does Mr. Thakur seem to lack the most?
    A. Emotional instability under pressure.
    B. Proactive problem solving.
    C. Ethical behaviour.
    D. Emotional stability under pressure.
    E. Independent decision making

    Answer 1: B

    Answer 2: E

    Answer 3: B

    Answer 4: B

    Answer 5: C

    Answer 6: D

    Individual Questions:

    7. Seema was a finance manager in an MNC and felt that gender discrimination at work place hampered her career growth. Frustrated, she quit the job and started a company. While starting her company, Seema decided that she would have equal proportion of males and females. Over the last six years, Seema emerged as a very successful entrepreneur and expanded her business to eight locations in the country. However, Seema recently started facing an ethical dilemma because she realized that female employees were not willing to travel across cities and work late hours, as the work required them to do so. Male employees did not hesitate undertaking such work. Seema started to feel the pressure of reducing the proportion of female employees. On the other hand, she is aware that equal representation was one of the strongest reasons for her to have founded the company.

    What should she do as a conscientious female entrepreneur?

    A. See if unwilling female employees could be given assignments which do not require travel and involve less overtime.

    B. Reduce the number of female employees as it is a business requirement. She should not let anything affect her business.

    C. Let the status quo continue.

    D. Henceforth hire only male employees.

    E. She should close the business.
    8. You, a recruitment manager, are interviewing Mayank, a hardworking young man, who has problems in speaking fluent English. He has studied in vernacular medium schools and colleges. Amongst the following options, what would you choose to do, if your company has vacancies?
    A. I would hire him at all costs.

    B. I would hire him for the job he is good at, and provide training in other areas.

    C. I would hire him for production or finance job but not for marketing job, which requires good communication skills.

    D. I would ask him to improve his communication skills and come back again

    E. I would not hire him as he might be a burden on organisation because of his poor communication skills.

    9. The city of Nagar has a population of 10 million, 2 millions amongst whom are rich, 3 million poor and 5 million belong to the middle class. Saundarya Cosmetics manufactured and sold beauty product to the rich class at a premium price. Its products were very popular with customers. Many people from the middle and poor segments of the population aspired to buy these products but could not afford because of the high prices. Of late, sales growth has been stagnating in the rich segment.

    Which of the following is the best option for Saundarya Cosmetics to maximize long-term profits?

    A. Sell the same products at lower prices to middle and poor classes.

    B. Sell similar products, of different quality standards with different brand names, to middle classes and poor classes.

    C. Sell its products under different brand names to middle and poor classes.

    D. Continue to target rich only and hope that today’s middle class would be tomorrow’s rich class.

    E. Target middle class as it is the largest segment and forget about the rich.

    10. A database software manufacturing company found out that a product it has launched recently had a few bugs. The product has already been bought by more than a million customers. The company realized that bugs could cost its customers significantly. However, if it informs the customers about the bug, it feared losing credibility.

    What would be the most ethical option for the company?

    A. Apologize and fix up the bug for all customers even if it has to incur losses.

    B. Do not tell customers about bugs and remove only when customers face problems, even if it means losses for the customers.

    C. Keep silent and do nothing.

    D. Keep silent but introduce and improved product that is bug-free at the earliest.

    E. Take the product off the market and apologize to customers.

    Answer 7: A

    Answer 8: B

    Answer 9: B

    Answer 10: A

    While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course.
    You can also see : XAT Decision Making Section – Golden Principles for tackling questions related to Management Issues

    XAT Decision Making Questions(2008-20)
    FREE PDF for Download

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  • Decision Making for XAT 2009 – Previous Year Questions

    Set 1
    Read the following caselet and choose the best alternative (Questions 1 to 4):

    Shekhar, an MBA from Singapore returned to his hometown-Jamshedpur. Jamshedpur had a population of 10 lacs with one of the highest per capita income among Indian cities. Shekhar loved music. While listening to his favourite song on “satellite radio”, he wondered if he could mix his passion with business. Incidentally, a few weeks later, while browsing the Internet, he came across an advertisement from Music World, which called for expression of interest from potential franchisees. Jamshedpur did not have a single good music outlet, where its residents could buy quality, variety and the latest from the world of music.

    Music World wanted the potential franchisees to own minimum 1200 square feet space and invest Rs. 30 lacs. Profits were to be shared in the ratio of 3:7 between Music World and the franchisee. While Shekhar was excited about working with a renowned brand, he was worried if Rs. 30 lacs was too high an amount to shell out. He did not have the entire amount with him and was thinking of borrowing from the bank. He made enquiries with other Music World franchisees located in towns like Patna and Ranchi, as he expected similar footfall in Jamshedpur. A franchisee in Patna had sales revenue varying from 1-2 lac rupees per month with profit margin in the range of 25-30%. Satisfied, Shekhar decided to proceed.

    Soon, he was on the lookout for the space. Jamshedpur had three main areas – Bistupur, Sakchi and Sonari. All areas were inter-connected by good roads. Bistupur was a business area where most of high end retail formats were located. Most upper middle class and higher class customers shopped there. It was also the education hub of the city. On the other hand, Sakchi was a growing lower middle class business area and Sonari had mostly residential population.

    Shekhar was in favour of choosing Bistupur as it was the place where he shopped. However, he soon stumbled across problems. Not only it was difficult to obtain space in Bistupur but property rentals touched 30-40 rupees per square feet per month. Rentals at Sakchi and Sonari were in the range of 15-20 rupees per square feet per month. Also, Shekhar’s friend, who stayed in Sakchi, told him that a few branded outlets were opening in Sakchi and it seemed to be the fastest growing market in Jamshedpur, with the highest ratio of teenagers. But, Shekhar was not in favour of Sakchi due to its low image. He expected to target college going crowd in Bistupur.

    High real estate prices in Bistupur and his low assessment of Sakchi market created confusion in Shekhar’s mind. To give the decision a serious and fresh thought, he decided to hit Jamshedpur-Ranchi highway in his newly acquired car.

    1. How best should Shekhar resolve his confusion?
    A. By investing in the franchise.
    B. Do not invest in the franchise and look for different brand name.
    C. Go back to Singapore and start looking for a job.
    D. Do a further in-depth study to find the drivers and potential of the business.
    E. Approach another music company for setting up a franchise.

    2. Suppose sales in Patna and Bistupur are likely to be the same, how many years would it take for Shekhar to recoup the investment (consider zero inflation)?
    A. Less than five years.
    B. Less than seven years.
    C. Less than eight years.
    D. Less than nine years.
    E. Maybe never.

    3. What could be the most likely reason for Shekhar’s bias in favour of Bistupur?
    A. Presence of college going crowd, as he felt they were the customers for the latest music.
    B. Crowded (hoi polloi) image of Sakchi.
    C. It was difficult for Shekhar to associate non-Bistupur areas with good quality products.
    D. Higher rentals in Bistupur.
    E. Patronage of Bistupur shops by executives and their families.

    4. Which one of the following is the most important decision criterion in such a business situation?
    A. Financial capability of entrepreneur.
    B. Changes in music industry.
    C. Future market growth.
    D. Profitability of business in first couple of years.
    E. Real estate prices.

    Answer 1: D

    Answer 2: E

    Answer 3: E

    Answer 4: C

    Set 2
    Read the following caselet and choose the best alternative (Questions 5 to 8)

    Om Chowdhury was one of the supervisors in the Fire and Safety (F&S) department of Maqsood Textile Mills. He was a distant cousin to Mr. Bhiwani, General Manager (Personnel & Administration). Personnel & Administration department was given the responsibility of all personnel related decisions. It was often rumoured that Om had obtained the job due to his cousin’s influence. However, Om was meticulous in the performance of his duties and didn’t give anyone a reason for complaint. It was known that Om was not much given to talking and kept to himself and to his duties.

    All F&S supervisors reported to Mr. Rabindra, the shop-floor manager. The mill operated on a three-shift basis and Rabindra allocated the supervisors to different shifts. They were required to be present at all times during the shift operation and carry out scheduled checks of machinery and fire fighting equipments. For some reasons, Om was allotted the night shift more often than other supervisors. Om accepted these allocations without any objection, while it was known that other supervisors would often plead and bargain with Rabindra to be allocated the day shifts. During the night shift, keeping awake and remaining mentally alert were some of the major challenges faced by the supervisors.

    Of late, Rabindra observed signs of indifference from Om. On two occasions he found Om absent from his cabin. Rabindra heard from others that Om was often found in different parts of the shop floor talking to employees. Rabindra called him to his office and reminded Om of his responsibilities. Om did not counter Rabindra. He promised that he would not be lax in his duties again. Rabindra also broached the subject with Mr. Bhiwani. Mr. Bhiwani called Om to his office arid talked on a very personal basis. He reminded Om that their family relations made it uncomfortable to all concerned. Om nodded and agreed to do better. Soon his performance became that of a model supervisor. It was often found he went beyond his official duties to sort out problems of employees.

    About three months later, Rabindra happened to visit the plant during night. As he looked into F&S office, he found Om playing solitaire on the office computer. Mr. Rabindra immediately fired Om.

    The next morning Mr. Bhiwani called Mr. Rabindra and asked how he can fire an employee. He suggested that Mr. Rabindra reconsider Om’s dismissal. “This decision has already been made. There will be no turning back” replied Rabindra.

    5. The options below give combinations of possible root cause of the problem and the justifications thereof. Given the details in the case, which one can be inferred to be the best option?
    A. Hiring of Om. Reason: That ensured Om was perpetually casual towards his duties.
    B. Om favouring to work during the night shift. Reason: Absence of Rabindra ensured that Om could relax.
    C. Rabindra’s bias against Om. Reason: Rabindra had been assigning too many night shifts to Om while for other supervisors he was lenient.
    D. Rabindra jumping to conclusions. Reason: He should have investigated whether Om had carried out his duties.
    E. Rabindra’s firing of Om. Reason: It led to a clash between Rabindra and Mr. Bhiwani.

    6. The details of the entire episode have become common knowledge among all the employees of the company. Out of the options below, which one presents the best way for the top management to resolve the issue so as to benefit the organization as a whole?
    A. Revoke Rabindra’s order. It can be communicated to others that firing was too severe a punishment for such a small incident of indiscipline.
    B. Ask Om for clarification. It can be communicated that since Om had clarified regarding his duties, the order has been taken back.
    C. Declare Rabindra’s order as void. Reiterate officially the disciplinary processes that need to be followed by managers along with their scope of authority.
    D. Ask feedback from other employees on the shop-floor regarding Om’s performance. This can be used to revoke Rabindra’s order.
    E. Take the feedback of other F&S supervisors as to the work involved during night shift. This would better explain Om’s behaviour.

    7. Out of the options below, which one best summarizes the learning from the solitaire incident?
    A. Managers often do not take any responsibility towards training juniors.
    B. People tend to become relaxed during night shift and require surprise checks to keep them on their toes.
    C. Certain roles would have different ways of carrying out their duties.
    D. Having relatives in the same organisation can be a source of potential problems.
    E. Managers tend to allocate silent people to difficult positions.

    8. Of the options below, which could have been a better response from Mr. Rabindra when he saw Om playing?
    A. He should have clarified about his authority to fire employees.
    B. He should have informed Mr. Bhiwani about the incident and asked him to take necessary action.
    C. He should have asked the employees of the shift regarding Om’s performance of his duties.
    D. He should have checked if Om had done his duties or not.
    E. He should have checked the production levels in the shift to see if it was as required.
    Answer 5: D

    Answer 6: B

    Answer 7: C

    Answer 8: D

    While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course.
    You can also see :XAT Decision Making Section – Golden Principles for tackling questions related to Management Issues

    XAT Decision Making Questions(2008-20)
    FREE PDF for Download

    Crack CAT with Unacademy!

    Use referral code HANDA to get 10% off.

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  • Decision Making for XAT 2010 – Previous Year Questions

    Set 1
    Directions (Qs.1 to Q4): Read the following case and choose the best alternative.

    Guruji’s Guidance
    Bhola, an avid nature lover, wanted to be an entrepreneur. He dreamt of establishing a chain of huts in Chatpur region to cater to tourists, who came attracted by the beauty and splendour of the Himalayas.
    However, he was appalled by current degradation of the Himalayan environment. He remembered the early times when everything was so green, clean and peaceful. Now, greenery was replaced by buildings, peace was shattered by honking of vehicles and flocking of tourists, and cleanliness was replaced by heaps of plastics.
    Bhola had a strong sense of right and wrong. On speaking to few locals about the issue, he realised that the locals were aware of these issues. However, they pointed out the benefits of development: pucca houses for locals, higher disposable income and with that, ability to send their children to better schools and colleges, better road connectivity, and access to latest technology in agriculture. Most locals wanted the development to continue.
    Saddened by the lack of support from the locals, Bhola took up the issue with the government. He met the chief minister of the state to find out if government could regulate the developmental activities to prevent environmental degradation. However, the chief minister told Bhola that such an action would slow down the economic progress. That also meant loss of substantial tax revenues for the government.
    Bhola needed to resolve the dilemma. Bhola always wanted to be an entrepreneur, who could contribute to the society and earn money as well. However, his business would also be responsible for destroying environment. If he did not set up his business, he would not be able to earn money and contribute to the society.
    After mulling over the issues, he went to his mentor, ‘‘Guruji’’. Guruji realised that it was really a difficult puzzle: if one saves the environment, there seems to be no development and if the people and the government sought development, the environment and hence future of this planet and human beings was at stake. After careful thought, he felt that dilemma could be resolved. He fixed up a meeting with Bhola to answer Bhola’s queries.

    1. Should Bhola still think of doing business?
    A. Yes, where there is a will, there is a way.
    B. No, saving the Earth for our children is more important than earning money.
    C. Yes, Bhola should do business while ensuring no environmental damage is done.
    D. Yes, but only if the government puts strict environmental regulations in place.
    E. Bhola should stop thinking about such a dilemma.

    2. Bhola wanted to advise the government about the new tourism policy. Bhola had developed a few alternatives as given below. Choose the best alternative.
    A. Stop environmental degradation by stopping the developmental activities.
    B. Forget about the environment; think about the people as they are the vote banks for politicians to come back to power.
    C. Suggest that the government should try to promote eco-tourism, which would be controlled and regulated by the government, as the welfare of majority of stakeholders.
    D. Suggest that the government should promote eco-tourism with public-private partnerships with the involvement of NGOs, so that there are checks and balances for inefficiencies and promotion for synergetic efforts between the government and private entrepreneurs.
    E. Involvement of impartial entities like NGOs who would provide a fair assessment of the policies.
    3. Bhola wished he was heading the government. He had listed down five concrete measures he would take if he were to head the government, choose the best alternative.

    A. Charge environmental cess from all businesses operating out of Himalayas.

    B. Charge cess from anyone who pollutes the environment, it be citizens or industries and reward those who have contributed to afforestation the most.

    C. All profit making organisations have to take responsibility of afforestation proportionate to their profitability.

    D. Think about maximising the revenues and forget about the environment.

    E. Institute a Green Valley Reward, which would be given to businesses highly active in afforestation efforts.

    4. Visualising he was heading the state government, Bhola thought of a likely problematic situation. Five years have passed. In these five years, Bhola has initiated a lot of pro-environment steps, including making people aware of the fact that it was this pristine environment which brought in tourists in the first place. Now he faced state elections. The opposition accused him of stopping development and causing unemployment under the guise of environment protection.
    If Bhola were to consider this accusation as a short-term battle, which option would Guruji suggest to Bhola to score a quick win?

    A. Accuse the opposition of having vested interests as the opposition leaders were denied licences for opening new hotels.

    B. Point out the improvement in environment since the implementation of pro-environment policies.

    C. Compare the unemployment levels since the implementation of the pro-environment policies and if they are less, accuse the opposition of making baseless charges.

    D. Point out that this government had initiated a regular cleaning-up drive and the opposition did not consider the data regarding the people who were employed in that drive.

    E. Call the charges as baseless accusations being used to malign the good work he had done.

    Answer 1: C

    Answer 2: D

    Answer 3: B

    Answer 4: D

    Set 2
    Directions (Qs. 5 to 7): Read the following case and choose the best alternative.
    Ranjan Tuglak, the youngest cabinet minister of the newly elected coalition, glanced through the notes prepared by his secretary regarding the recent controversies on Racket, the most popular game of the country. While International Racket Association (IRC) has agreed to implement Drug Testing Code (DTC) promoted by World Athletic and Games Federation, Racket Club which controls the entire racket related activities (unlike any other sports and games of the country) had some reservations regarding the initiative. Majority of the citizens waited for the international competitions eagerly and were fanatical about their country’s participation in them.
    As a result of the popularity of the game, 70 %of the total revenue associated with the game originates from the country. Hence Racket Club has high bargaining power with IRC and can change any decision that is not aligned with its interests. Three most popular and senior players, including the captain, are against the application of DTC citing security reasons. A decision against the interests of these players may result in law and order problems throughout the country. Other players support the decision of their senior colleagues and if Racket Club refuses to agree, players may support Counter Racket Club, a new national level initiative. Counter Racket Club may threaten the monopoly of Racket Club, if it succeeds to attract some popular racket players. Ranjan’s father had been forced to resign from politics due to alleged corruption charges. Ranjan had completed his entire education from abroad before returning to join politics.
    He is a great soccer player and has major reservations against racket. According to him, racket has negative influence on the country’s youth and diverts their attention from productive work. He also considers drug testing as an essential feature for any sports and games across the world. As the new cabinet minister for Youth and Sports he needs to take some important decision on this controversial issue.

    5. If the objective of Ranjan is to
    (i) Create a good image of himself as a politician and
    (ii) Create a long lasting positive impact, the best decision he should take is:
    A. Force Racket Club to accept all modifications related to drug testing
    B. Provide adequate security protection to the satisfaction of players nominated by Racket Club before enforcing drug testing.
    C. Align with Counter Racket Club
    D. Popularise soccer in country through endorsements by the popular players of racket.
    E. Ban racket.

    6. Identify the best rationale that may force Ranjan as a politician to take a decision in favour of IRC.
    A. President of Racket Club and Ranjan belong to different political coalitions and he can use Counter Racket Club against the opponent.
    B. Next World cup is scheduled to be held in a country which has adopted DTC as the guiding.
    C. Ranjan is interested in reducing the popularity of racket in country.
    D. As the cabinet minister, Ranjan has the power to take such a decision.
    E. Top three international teams (and respective national clubs) are keen to implement DTC.

    7. According to DTC, each athlete/sportsperson need to submit a schedule for three months (in advance) that specifies an hour each day when they can be randomly tested for drugs. DTC also assured the confidentiality of the submitted schedule by
    (i) Limiting the access of player-supplied information to two senior officers,
    (ii) These officers will have the internet based access only to the schedule of those sports persons who are randomly selected for testing (and not of everyone) and
    (iii) Introducing similar security features for DTC database as in case of financial institutions.
    Top three popular players realize that no reason other than security can help them to get a favourable decision from Ranjan. Hence during discussions they should focus on all options except:
    A. Any clue related to their private schedules may also result in huge public gathering and it will make the job of security agencies very difficult.
    B. Popular racket players are included in the hit list of terrorist organisations.
    C. Recent report by World Bank rates their country among the top five nations with maximum amount of internet based data stealing.
    D. It is difficult to provide adequate security coverage in large stadiums where racket is played.
    E. DTC is not willing to share the details of two senior officers involved in drug testing with the security agencies of the country for background study.

    Answer 5: B

    Answer 6: B

    Answer 7: D

    Set 3
    Direction for questions 8 to 10: Read the passage given below and solve the questions based on it.

    In calendar year 2008, there was turbulence in the air as Jet Airways’ Chairman pondered what course of action the airline should take. Air India was also struggling with the same dilemma. Two of India’s largest airlines, Air India and Jet Airways, had sounded caution on their fiscal health due to mounting operational costs. A daily operational loss of $2 million (Rs 8.6 crore) had in fact forced Jet Airways to put its employees on alert. Jet’s senior General Manager had termed the situation as grave. Jet’s current losses were $2 million a day (including Jet-Lite). The current rate of Jet Airways’ domestic losses was $0.5 million (Rs 2.15 crore) and that of JetLite was another $0.5 million. International business was losing over $1 million (Rs 4.30 crore) a day. Please ignore this sentence. It is put in by the HandaKaFunda team to catch hold of people who copy paste stuff without putting in any effort.

    The situation was equally grave for other national carriers. Driven by mounting losses of almost Rs 10 crore a day, Air India, in its merged avatar, was considering severe cost-cutting measures like slashing employee allowances, reducing in-flight catering expenses on short-haul flights and restructuring functional arms. The airline also considered other options like cutting maintenance costs by stationing officers at hubs, instead of allowing them to travel at regular intervals. Jet Airways, Air India and other domestic airlines had reasons to gel worried, as 24 airlines across the world had gone bankrupt in the year on account of rising fuel costs.
    In India, operating costs had gone up 30-40%. Fuel prices had doubled in the past one year to Rs 70,000 per kilolitre, forcing airlines to increase fares. Consequently, passenger load had fallen to an average 55-60% per flight from previous year’s peak of 70-75%. Other airlines faced a similar situation; some were even looking for buyers. Domestic carriers had lost about Rs 4,000 crore in 2007-08 with Air India leading the pack. “As against 27% wage bill globally, our wage bill is 22% of total input costs. Even then we are at a loss,” an Air India official said.

    Civil aviation ministry, however, had a different lake. “Air India engineers go to Dubai every fortnight to work for 15 days and stay in five star hotels. If they are stationed there, the airline would save Rs 8 crore a year. This is just the tip of the iceberg. There are several things we can do to reduce operational inefficiency”. According to analysts, Jet Airways could be looking at a combined annual loss of around Rs 3,000 crore, if there were no improvement in operational efficiencies and ATF prices. Against this backdrop, the airline had asked its employees to raise the service bar and arrest falling passenger load.

    8. Which of the followings are the reasons for Jet Airways not doing well?
    1. Rising ATF prices 2. Reduced passenger load
    3. Declining service quality 4. Staff travelling to Dubai
    A. 1 and 2
    B. 2 and 3
    C. 1, 2 and 3
    D. 1, 2 and 4
    E. 1, 2, 3 and 4

    9. The total loss for the airline industry was likely to be Rs. 10,000 crore. Jet Airlines lost Rs. 3,000 crore, Air India lost Rs. “X” crore and “rest of the airlines” lost Rs. “Y” crore. What was the loss for the “rest of the airlines”, in 2008?
    A. Cannot be Determined
    B. Rs. 3,350 crore
    C. Rs. 3,690 crore
    D. Rs. 3,340 crore
    E. None of the above

    10. Suppose fuel constitutes 30% of the revenues, do you think airlines would be in a better situation by reducing their fare?
    A. Yes
    B. Data insufficient to reach decision
    C. No
    D. It would not matter
    E. None of the above
    Answer 8: A

    Answer 9: D

    Answer 10: B

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  • Decision Making for XAT 2011 – Previous Year Questions

    Individual Questions:

    1. Indian government may hold top executives responsible if state-run power companies fail to meet performance targets and punish them with fines and transfers. The strict performance parameters are aimed at ensuring that at least the reduced target for 62,000 MW of generation capacity addition is achieved before the end of the 11th Plan, said a power ministry official. Performance of chairman and managing directors of the power Public Sector Units (PSUs) in project implementation will be assessed as per the terms and conditions stipulated in the company’s memorandum of understanding (MoU) with the power ministry, he said, requesting anonymity. Performance parameters of executives had came under strict scrutiny due to a lack of progress in capacity addition program. While the target for the 11th five year plan has already been scaled down by the government from 78,500 MW, in the first three years of the plan yielded only 22,302 MW of fresh capacity.

    If you were the chairman of one of these power PSU’s, which of the following statements (all of which are assumed to be true) could best be used in order to strengthen your case against the government holding top executives responsible?
    (3 marks)

    i. The labour unions, owing allegiance to ruling party at the Centre, are not allowing work to progress with their demands for wage hikes that are untenable.
    ii. The actions of the mid-level management are not in line with the objectives laid down by the top management.
    iii. The delays have been due to difficulties in obtaining funds at reasonable interest rates on account of the recessionary conditions.
    iv. We are not to blame. The government is not doing enough to ensure availability of sufficient fuel to power the existing plants, let alone the new plants.
    v. The government had ignored the infrastructure availability like roads etc., and environmental clearances required for such projects and therefore set an unrealistic target to begin with, and the revised target is also unrealistic as well and the revised target is also unrealistic as well.
    A. i and ii
    B. i and iii
    C. i, iii and iv
    D. ii, iv and v
    E. i, ii, iii, iv and v

    2. Wind turbine maker Leone Energy posted a net loss of Rs. 250 crore for the fourth quarter ended March 31, 2010 as against a net profit of Rs. 350 crore in the same quarter a year-ago. In the financial year 2009-10, the company clocked a gross income of Rs. 6,517 crore, as against Rs. 9,778 crore in the previous year. Leone Energy clocked a loss of Rs. 1,100 crore in 2009-10, as against a net profit of Rs.320 crore in 2008-09. The sales revenues stood at Rs. 22,400 crore for the year, approximately 21 per cent less against Rs. 28,350 crore last year. For the financial year ending March 31, 2010, Leone Energy’s sales volume (in terms of capacity of projects executed) was 4,560 MW from 2,935 MW a year ago. The CEO of Leone Energy in his message to shareholders suggested that the poor performance of the company was the result of adverse economic conditions during the year ended March 31, 2010.

    You are a shareholder owning 5% of the shares of Leone Energy, have seen the stock price decline by more than 50% during the year 2009-10, and are quite upset with the way the management has been handling the business. You have decided to confront the management at the next shareholders’ meeting and have chosen the following 5 point to argue against the CEO’s version of the story. In light of the above paragraph, select the most appropriate order of these 5 statements that you, as a disappointed shareholder, should adopt as a stringing and robust preface in your case against the management in front of the management and other shareholders.
    (3 marks)

    i. The management is not doing its best to maintain the profitability of the company.
    ii. The company has actually increased its sales volume during the year under consideration.
    iii. The adverse economic conditions have led to a worldwide increase in the adoption of alternative energy sources, reflecting in all time highest profits for wind turbine makers in both developed and developing countries.
    iv. The management has been lax with its employees as the management enjoys a large set of benefits from the company that they would have to forgo if they became strict with employees.
    v. The company is trying to increase sales by charging lower, unprofitable prices.
    A. ii, iii, i
    B. i, iii, ii
    C. ii, V, iii
    D. iii, ii, v
    E. v, ii, iii

    Answer 1: C

    Answer 2: D

    Set 1

    Answers Questions 3 to 4 based on the information given below.

    The CEO of ABC Telecom Ltd. (ABC) is in a quandary since he received the telephone call in the morning from his counterpart at LMN Telecom Ltd. (LMN). Both companies were engaged in a bitter experience a couple of years ago when they had attempted to merge with the intention of creating a behemoth telecom company, possibly the largest in the world. The merger had fallen through due to opportunistic behaviour on the part of Mr. Das, then CEO of LMN. During the time the merger talks were taking place, Mr. Das had also approached a few other suitors for LMN in an attempt to force ABC to pay a higher price. Further, there were reports of attempts by management of LMN to scuttle the deal. Back then, ABC had also faced stiff opposition to the deal from one of its large shareholders.
    Since then, a lot has changed for both companies. The bleak economic conditions due to recession had led to a drastic fall in the market value of both companies, with ABC comparatively losing much more in terms of market value. Raising money has become more difficult for both companies, especially for LMN. On the brighter side for ABC, the opposing shareholder had recently sold off his stake to another investor who earlier had supported the original merger deal with LMN a couple of years ago.

    3. Which of the following would be the most appropriate line(s) of thought for the CEO of ABC to adopt in response to the offer by LMN?
    (3 Marks)
    i. Once bitten twice shy. There is simply no way I can think of resuming talks with LMN after their unethical behaviour the previous time around. I would rather spend my time on merger discussions with other companies.
    ii. The deal may make less business sense this time around. However, if it goes through, I will become the CEO of the world’s largest telecom company. So let us try our luck once more.
    iii. I will resume talks only if they provide guarantees as to the reimbursement of our expenses incurred, in the event of the deal not materializing.
    iv. Let me not be biased against dealing with LMN, if we can secure the deal at a reasonably low price, benefiting our shareholders, let us go ahead with it.
    v. I am not sure if we can raise the money now. In any event, they are the ones facing greater financial problems. So let’s not hurry now. We might have an opportunity to buy them out at a cheaper price later.
    A. i and iii
    B. ii and iii
    C. iv and v
    D. i and ii
    E. i and iv

    4. The merger of ABC and LMN has been confirmed after detailed negotiation with LMN holding the majority share of the resultant entity. LMN has financed the merger by taking debt at higherthan- market interest rates from its bankers, in the hope that it would be able to streamline operations and reduce costs in the resultant entity which will allow it to repay the loan. If you were an investor looking to invest in telecom companies, which of the following could be the strongest reasons for staying away from investing in resultant entity? (3 Marks)
    A. The new entrants in the telecom market were coming with better offers for the customers.
    B. The market would be as competitive as ever for the resultant entity, thus providing no guarantee for success.
    C. The combined management did present have any grand strategies to the investors.
    D. ABC’s management was giving in to Mr. Das who was a known opportunist.
    E. LMN was using high cost debt to purchase another company in the same industry facing similar problems with no visible advantage for the combined entity over competitors.

    Answer 3: C

    Answer 4: E

    Set 2

    Answers Questions 5 to 8 based on the information given below.

    Chetan Textile Mills (CTM) has initiated various employee welfare schemes for its employees since the day the mill began its operations. Due to its various welfare initiatives and socially responsible business practices, the organisation has developed an impeccable reputation. Majority of the regular workers in Chetan Mills had membership of Chetan Mills Mazdoor Sangh (CMMS), a non political trade union. CMMS had the welfare of its member as its guiding principle. Both CTM and CMMS addressed various worker related issues on a proactive basis. As a result no industrial dispute had been reported from the organization in the recent past.

    These days majority of the employers deploy large number of contract labourers in their production processes. In an open economy survival of an organization depends on its competitiveness. In order to become competitive, an organization must be able to reduce cost and have flexibility in employment of resources. Engaging workers through contractors (contract labourer) reduces the overall labour cost by almost 50%. Indian labour legislations make reduction of regular workers almost impossible, but organisations can overcome this limitation by employing contract labourers. Contract labourers neither get the same benefit as regular employees nor do they have any job security. According to various recent surveys, government owned public sector units and other departments are the biggest employers of contract labourers in the country. Contractors, as middle-men, often exploit the contract labourers, and these government organizations have failed to stop the exploitation.

    Over time CTM started engaging a large number of contract labourers. At present, more than 35% of CM’s workers (total 5,000 in number) are contract labourers. CMMS leadership was wary about the slow erosion of its support base as regular workers slowly got replaced by contract workers and feared the day when regular workers would become a minority in the mill. So far, CMMS has refused to take contract labourers as members.
    Recently, based on rumours, CTM management started to investigate the alleged exploitation of contract labourers by certain contractors. Some contractors felt that such investigations may expose them and reduce their profit margin. They instigated contract labourers to demand for better wages. Some of the contract labourers engaged in material handling and cleaning work started provoking CTM management by adopting violent tactics.
    Today’s news-paper reports that police and CTM security guards fired two or three rounds in air to quell the mob. The trouble started while a security guard allegedly slapped one of the contract labourers following a heated argument. Angry labourers set fire to several vehicles parked inside the premises, and to the police jeeps.

    5. In the wake of recent happenings, what decision is expected from CTM management? From the combinations given below, choose the best sequence of action. (4 marks)

    I. Stop the current investigation against the contractors to ensure industrial peace; after all allegations were based on rumours.
    II. Continue investigation to expose exploitation and take strong actions against trouble makers.
    III. Get in direct touch with all contract labourers through all possible means, communicate the need for current investigation to stop their exploitation, and convince them regarding CTM’s situation due to competition. Also expose those contractors who are creating problems.
    IV. Promise strong action against the security guards who are guilty.
    V. Increase the wages of contract labourers.
    A. I, V
    B. I, II
    C. II, V
    D. III, IV
    E. IlI, V

    6. In the current context, which among the following represent the most suitable reaction from CMMS leadership? (5 marks)
    A. Distance CMMS from the episode and explain that CMMS is not involved in the fiasco through a press conference.
    B. Offer membership to contract labourers, which would put the contract worker at par with the regular workers in CMMS.
    C. Do not offer membership to contract labourers, but represent their interests during negotiation in order to prevent the formation of another union in CTM.
    D. Start another union exclusively for contract labourers of CTM.
    E. Adopt a neutral stand in public, and pass on information related to problem creators to the CTM management.

    7. Out of the options given below, which one would be the best policy decision by government at the national level? (2 marks)

    A. Asking CTM management to pay same wages to both regular and contract workers.
    B. Income tax raids in offices of contractors under investigation.
    C. Setting up a new labour welfare office within CTM premises.
    D. Setting up a new committee to make recommendations for changes in labour legislations with an objective to reduce exploitation of contract labourers.
    E. Use entire government machinery to support CTM, which has an impeccable track record.
    8. The criminals in the surrounding area often took their cue from the situation in the mill, creating law and order problems outside the mill which would later make it difficult for workers to come to mill safely. Given the circumstances, identify the stakeholder that should be the immediate priority of CTM management. (1 Mark)
    A. Contract labourers who were allegedly beaten by the security guard of the company.
    B. District administration that is concerned about the spread of violence.
    C. CMMS that prefers an immediate settlement of the issue.
    D. Customers who are concerned about prices and regular supplies.
    E. Contract labourers who are demanding job security and same wages as regular employees.

    Answer 5: D

    Answer 6: C

    Answer 7: D

    Answer 8: E

    Set 3
    Answers Questions 9 to 12 based on the information given below.
    In the country of Gagan, air travellers can buy their tickets either directly from the airlines or from three websites that are licensed to offer ticketing services online. In Gagan most of the commercial transactions are done electronically, and all citizens have an account with its national bank CeeCee. As a result the three websites have become popular and each transaction through these websites carries a surcharge of Gs. 250 (Gs. refers to Guppes, currency of Gagan). Given below are four post new-year (January 2, 2011 to February 28, 2011) offers from three competing websites:

    Cozy_travel Offer: Make a confirmed booking for any service (fight ticket, hotel or rail tickets) through from December 5, 2010 to February 8, 2011 and become eligible for two free air tickets (offer is limited to the base fare). Free tickets have to be booked through online request from January 1, 2011 to February 28, 2011. The request for free tickets should be submitted at least twenty-one days in advance. Free tickets are non – amendable (expect the passenger name) and cannot be cancelled. Free ticket cannot be exchanged for cash or kind with anybody. Cozy_travel will try its best to secure the free ticket as per the request. However, ticket confirmation is subject to airline schedule and set availability in airlines selected and finalized by Cozy_travel from specific available airlines.

    Cool_yatra Offer: Book any air ticket of any airline on on or after December 21, 2010 and get your next ticket free. Under this offer, only the base fare of free ticket will be refunded by Customer will have to bear rest of the charges (other fees and surcharges). The value of base fare will be refunded to passenger on/after March 1 or fifteen days after completion of travel on free ticket (whichever is later). The free ticket can be booked only on GagaAir flights. The free ticket must be booked within fifteen days of booking the original ticket and the travel date of free ticket must be fifteen days after the booking date of free ticket. There must be a seven day gap between the travel date of main/original ticket and the free ticket. The travel date of free ticket should be on or before February 28, 2011. The free ticket cannot be transferred. On cancellation of the original ticket(s), you no longer remain eligible for the free ticket(s).

    Easy_travel Cash Back Offer: Easy travel offers 25% cash back on all air ticket bookings between December 5, 2010 and February 28, 2011 using CeeCee net banking service or its debit/credit card. The cash back amount will be credited back to customers account within twenty-one days from making the transaction. Maximum cash back during the period is Gs. 400 per person per ticket and total amount that can be claimed by the customer is Gs. 2,400.

    Ek Ke Sath Ek Offer from Easy_travel: Book an AirSpice ticket with Easy_travel using any credit/debit card, and get another ticket absolutely free. The free tickets will be issued on AirSpice on its entire network. The offer is valid for sale from January 11, 2011 to January 31, 2011. The free ticket must be booked at least fifteen days prior to the date of travel and need to be completed within the offer period. The promotion code for the free ticket will get activated only seven days after booking the main ticket. Easy_travel will charge a handling fee of Gs. 1000/- per person for any amendments made on main ticket. Cancellations of tickets purchased under this offer are not permitted. The free ticket obtained under this offer cannot be exchanged for cash and cannot be rerouted.
    9. Which offer has got the maximum chance for becoming the most popular among the air travellers of Gagan during post new-year period?
    Among the following options, choose the best offer-explanation combination.
    (3 marks)
    A. Cozy_travel, because the customers will get twice the number of flights and offer is applicable for all services provided by Cozy_travel.
    B. Cozy_travel, because it allows any customer to transfer the free ticket to any one if they are not interested in using it.
    C. Ek ke sath ek offer from Easy_travel, because it offers absolutely free tickets to all customers.
    D. Cash Back offer from Easy_travel, because all other offers are restricted either in terms of airlines to choose or the period of offer.
    E. Cozy_travel, because it allows customers to use free tickets even after post new-year period.

    10. Suppose the offer from Cool_yatra became the most popular, and the other two agencies have sought help from business consultants to make their offers more attractive. Identify the best recommendation among the following. (3 marks)
    A. Recommendation for the Ek Ke Sath Ek Offer of Easy_travel: Negotiate with GagaAir to come up with an offer that provides one free ticket for every main ticket booked in AirSpice.
    B. Recommendation for the Cash Back Offer of Easy_travel: Ensure that cash back amount will be credited back to customer’s account within fifteen days.
    C. Recommendation for the offer from Cozy_travel: Reduce the number of free tickets to one and applicable only for air ticket booking (not for other services), but allow customers to book their free tickets from Cozy _travel. com in GagaAir or comparable airlines without any date restrictions.
    D. Recommendation for the Ek Ke Sath Ek Offer of Easy_travel: Negotiate with GagaAir to come up with an offer that provides one free ticket for every main ticket booked in GagaAir and run both offers simultaneously.
    E. Recommendation for the offer from Cozy_travel: Do not allow customers to transfer tickets to others, but disclose that Cozy _trav el will consider both GagaAir and AirSpice flights that connect all cities in Gagan for issuing free tickets.

    11. Jagan is appearing for MAAT exam on January 2, 2011, in a city which is not his home town and he is yet to book the air ticket to reach his hometown from MAAT center. Based on his MAAT performance, he is confident about getting an interview call from the institute of his choice located in Akashpur. All institutes associated with MAAT will contact the short-listed candidates within next two weeks with venue details and date of interview. Interviews will be scheduled within fifteen days from the date of announcement of shortlist, and will be held at the respective institutes. Jagan’s hometown, MAAT centre, and Akashpur are connected by all airlines and the base fares start at Gs. 1,000. While visting Akashpur for the interview, Jagan will have to put up in a hotel. The minimum charge for booking a hotel in Akashpur through Cozy_travel is Gs. 2,400. Equally good hotels which are not listed in the Cozy_travel website charge Gs. 1,000. All the three travel websites assure a minimum of one free air ticket for every booking. If Jagan has no other reason to fly, which of the following offers should Jagan go for? (3 marks)

    A. Ek Ke Sath Ek Offer of Easy_travel.
    B. Get the flight ticket and hotel booking from Cozy_travel. He should use confirmed free ticket for return journey and exchange extra ticket (if any) on barter basis.
    C. Get the flight ticket through Cozy_travel, and use the second ticket if available for the return journey.
    D. Get the flight ticket from Cool_yatra.
    E. Get the flight ticket and hotel booking through Cozy_travel, and use free tickets for return journey.

    12. Janaki needs to reach Khilli on January 28 to visit her uncle, and will return after fifteen days. Janaki found that the minimum fare for both the to and fro journeys is Gs. 5,000 which includes Gs. 1,200 base fare. If all airlines connect Janaki’s city to Khilli, and all three offers (except the Cash Back Offer) ensure minimum of one free air ticket. Which of the following should Janaki opt for? (3 marks)
    A. Ek Ke Sath Ek Offer of Easy_travel
    B. Cash Back Offer of Easy_travel
    C. The Cozy_travel offer
    D. The Cool_yatra offer
    E. Buy air tickets directly from airline websites

    Answer 9: B

    Answer 10: C

    Answer 11: D

    Answer 12: C

    While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course.

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  • Decision Making for XAT 2012 – Previous Year Questions

    Set 1
    Answer question nos. 1 and 2 on the basis of the following letter.
    To the Chairman:
    Dear Mr. Sailesh,
    At the December 3, 2011 meeting, it was decided that no two officers would hold positions on the same committee. It has recently come to my attention that both Chaitanya Rao and Ajit Singh will be serving in some capacity on the Cultural Committee, and both have been nominated for officer status. As you know, this is in direct disregard for the rules as voted by the Members Council last December 3, 2011. I would hope that sufficient action be taken by the Disciplinary Committee (on which committee both of the above are members) so that this problem will be remedied.
    Arvind Singh

    1. Which of the following is an essential flaw that the writer of the letter overlooked? (1 Mark)
    A. Rao and Ajit are already serving together on the Disciplinary Committee.
    B. The Chairman has no power in the matter.
    C. The Members Council cannot pass rules limiting members.
    D. Rao and Ajit are yet to be confirmed as officers.
    E. Cultural Committee is only active during the annual festival.

    2. If both the nominations are confirmed, which of the following, exhaustively and reasonably, describes actions that may occur in the near future? (1 Mark)
    A. Arvind resigns his membership.
    B. Either Rao or Ajit resigns his membership.
    C. Ajit resigns his committee post on the Cultural Committee.
    D. Rao resigns his position on the Cultural Committee.
    E. Either Rao or Ajit resigns his position from the Cultural Committee, and the other resigns his position on the Disciplinary Committee.

    Answer 1: D

    Answer 2: E

    Set 2
    Answer question nos. 3 to 5 on the basis of the information given in the following case.
    Due to increased competition, Ginger Automobiles, the Indian subsidiary of Pepper Automobile Company (PAC) reported lower sales and profits. PAC expects its new model Limo, developed especially for value conscious customers of India and China, would revive its fortunes. In order to prevent customers from buying competing products, PAC announced the launch of Limo six months before schedule. Due to unrest in its Indian supplier’s plant, deliveries of essential components for its main plant were hampered, and hence it decided to launch Limo in China only as per the original plan. Within a short span of time, Limo captured 30% market share in China, which was 200% higher than expected. Indian customers who had looked forward to purchasing Limo were becoming increasingly unhappy to the non-availability of Limo in the India. Ginger’s dealers were worried about loss of business from the customers who might switch to other cars.

    3. Statement I: In the Chinese market, Baft, and Hebe, are competing models in Limo’s target market. Due to increase in sales of Limo by 200%, Baft and Hebe saw their market share decline by 10%.
    Statement II: Baft and Hebe were not desired by the customers due to their new features. Which of the following conclusions can be most justifiably made? (1 Mark)
    A. I alone B. II alone C. Either I or II
    D. Neither I nor II E. I and II together

    4. Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is: (1 Mark)
    A. Suggest to customers to wait.
    B. Suggest to customers to consider purchasing any of the other PAC’s models available in showrooms, with a substantial discount along with a gift.
    C. Suggest to PAC to treat Indian and Chinese markets equally.
    D. Promise the top management of PAC higher sales/profit from Indian market compared to Chinese market.
    E. Suggest to the top management of PAC to manufacture essential components in either India or China.

    5. Mr. Murugan from Chennai experienced the comfort of Limo during his visit to China. He was willing to deposit an approximate price of Limo to buy the first available unit from Mr. Ahmed, a dealer in Chennai, known for fair dealing. Ginger Automobile is yet to announce the actual price, and the process for allocation of the vehicles. In order to maximize his cash flow, Mr. Ahmed should (1 Mark)
    A. Collect the amount from Mr. Murugan. Later when the delivery is delayed, blame it on PAC’s problems.
    B. Collect 50% as advance and the remaining 50% after the confirmation of launch date by Ginger Automobiles.
    C. Collect the amount Mr. Murugan is willing to deposit after clarifying that delivery is subject to the company policy.
    D. Not collect the amount, but suggest to Mr. Murugan to write to Ginger Automobiles.
    E. Collect the amount and transfer it to the account of Ginger Automobiles, instead of keeping it in his personal account.

    Answer 3: D

    Answer 4: B

    Answer 5: C

    Set 3
    Answer question nos. 6 to 9 on the basis of the information given in the following case.
    Tina, a blast furnace expert, who works as a technology trouble-shooter stays in Jamshedpur. She has got an important assignment in Delhi, which requires six hours to complete. The work is so critical that she has to start working the moment she reaches the client’s premises. She is considering various options for her onward and return journey between Jamshedpur to Delhi. A quick search revealed that ticket from Jamshedpur to Delhi is available in two trains. Trains 12801 and 12443 depart from Jamshedpur station at 06:45 hrs and 15:55 hrs and reach Delhi next day at 04:50 hrs and 10:35 hrs respectively. Trains 12444 and 12802 start from Delhi at 17:20 hrs and 22:20 hrs and reach Jamshedpur next day at 10:35 hrs and 20:05 hrs respectively. Another option is to reach Ranchi by a three hour road trip and take a flight to Delhi from Ranchi. The distance between Ranchi and Delhi is covered in 105 minutes both-ways by any of the scheduled flights. Air India operates two flights, AI 9810 and AI 810, which depart Ranchi at 8:00 hrs and 15:25 hrs respectively. Flight number IT-3348 operated by Kingfisher Airlines departs Ranchi at 19:20 hrs, Return flights operated by Air India, AI 9809 and AI 809, depart Delhi at 5:50 hrs and 11:00 hrs respectively. Flight number IT-3347 operated by Kingfisher Airlines departs Delhi at 17: 10 hrs. From Tina’s home Jamshedpur railway station is five minutes drive, and her destination at Delhi is 90 minutes and 30 minutes drive from airport and railway station respectively. One has to reach the airport at least one hour before the scheduled departure to complete the boarding procedure. At every railway station she loses five minutes in navigating through the crowd.
    6. If Tina wants to minimize the total time out of Jamshedpur, the best option for her, from the options given below, is: (1.5 Marks)
    A. Al 9810 and return by IT 3347.
    B. AI 9810 and return by train number 12802.
    C. IT 3348 and return by AI 9809.
    D. T rain number 12443 and return by train number 12444.
    E. AI 9810 and return by train number 12444.

    7. Tina gets a message that her work has to be completed between 9:00 hrs. and 17:00 hrs. If she wants to minimize the total time out of Jamshedpur, the best option, from the options given below, for her among the following is to go by : (1.5 Marks)
    A. Train 12443 and return by Train 12444
    B. Train 12801 and return by Train 12802
    C. AI 9810 and return by AI 9809
    D. AI 810 and return by AI 9809
    E. IT 3348 and return by IT 3347

    8. Tina has to appear for an exam on 8th of January in Jamshedpur and she can start from her residence in Jamshedpur only after 16:00 hrs of the same day. Choose the option, from the options given below, that will help her to minimize the total time out of Jamshedpur. (1.5 Marks)
    A. Go by Train 12443 and return by Train 12444
    B. Go by Train 12443 and return by AI 9809
    C. Go by IT 3348 and return by Train 12801
    D. Go by AI 810 and return by Train 12801
    E. Go by AI 9810 and return by AI 9809

    9. If Tina decides to minimize the in-between waiting period, the option that she should choose from the options given below, will be:
    (1.5 Marks)
    A. Go by Train 12801 and return by IT 3347
    B. Go by Train 12443 and return by Train 12802
    C. Go by Al 9810 and return by Train 12802
    D. Go by Al 810 and return by AI 9809
    E. Go by IT 3348 and return by AI 809

    Answer 6: B

    Answer 7: E

    Answer 8: E

    Answer 9: D

    Set 4
    Answer question nos. 10 to 15 on the basis of the information given in the following case.
    Teknik Group of industries had businesses in different sectors ranging from manufacturing, construction, fish farming and hotels. These different businesses operated as semi-independent units managed by the unit level managers. Teknik’s management had an internal consultancy group called as Business Advisory Group (known internally as BAG). The 15 experts in BAG were hired personally by Mr. Teknikwala, the owner of Teknik, who wanted this core group of experts to help his organization grow fast without facing the typical growth hurdles. Most of them were specialists in fields like law, information technology, human resource management, and operations management. Al most al l of t hem had experience spanning decades in the industry. Whenever any of the units faced any significant problems, the unit level managers would put up a request for help to BAG. The problems ranged from installation of internal MIS systems, to financial advice related to leasing of equipment, to handling of employee grievances. Over a period of 20 years, Teknik’s revenues grew from 100 crore to 10,000 crore with guidance of BAG and due to Mr. Teknikwala’s vision. Given its reputation in the industry, many people wanted to start their careers in BAG. Often young MBAs, fresh out of business schools would apply. However their applications used to be rejected by Mr. Teknikwala, who had a preference for people with extensive industry experience. Things changed after the unfortunate demise of Mr. Teknikwala. His daughter Miss. Teknikwali took up the family business. She was an MBA from one of the premier business schools, and was working in a different company when Mr. Teknikwala passed away. She preferred that BAG develop new ideas and therefore inducted freshly graduated MBAs from premier business schools.
    She personally supervised the recruitment and selection process. Now the entire group constituted of 50 specialists, out of which 35 were the old time members. She also changed the reporting relationships in the BAG group, with some of the older members being made to report to the new members. In IT team, Mr. Shiv, a newly recruited MBA, was made in-charge. For the older members it was a shock. However, as most of them were on the verge of retirement, and it would be challenging to search for new jobs while competing with younger professionals, they decided to play along. After one month, all business units were caught up in the ERP fever. This was an idea pushed by Ms. Teknikwali who the need the need to replace the old legacy systems with latest ERP system integrating all the units of Teknik. This was heavily influenced by her experience in the previous where an ERP system was already up and running. Therefore she was not aware of the difference between installing an ERP system and working on an already installed one.
    The ERP implementation in Teknik Group required extensive coordination with senior level managers of all units and it represented an extra work for those who were involved. This coordination was required to understand the different work processes and the users’ requirements. This coordination activity was being extensively managed by the old timers as they were familiar with internal processes and people in the different units. An external consultant was also hired for customisation and implementation. After two months, BAG teams had to fortnightly present their progress to Ms. Teknikwali’s team. In the last meet ing Ms. Teknikwali was dissatisfied. She explained her thinking that since ERP impacted every spect of the business, the roll out had to be done faster. She wanted Mr. Shiv to get the implementation completed ahead of schedule. In the meeting she asked Mr. Shiv to get the people in IT team to be more productive. Not willing to disagree, Mr. Shiv committed to a roll-out schedule of complete ERP system in 6 months instead of earlier decided 14 months. Next day, Mr. Shiv presented the revised project milestone to BAG members. He told them that in order to meet the deadline, the members were expected to work on week-ends till the completion of the project. Along with that, they were also expected to maintain their earlier standards of delivery time and quality for the normal troubleshooting and internal advisory work. Mr. Shiv also pointed out that anyone whose performance did not meet the expectations would be subjected to formal disciplinary action.
    The meeting ended without any member commenting on Shiv’s ideas, although Mr. Shiv heard a lot of mumbling in the corridor. Over the week, Shiv noticed that the members seemed to avoid him and he had to make extra effort to get ideas from them. After a fortnight Shiv reviewed the attendance register and found that Mr. Lal, an old time member, had not come during the weekends and certain decisions were held up due to lack of inputs from Mr. Lal. Mr. Shiv issued a written reprimand to Mr. Lal. He was speechless on receiving the reprimand but kept silent. It has been three days since that incident. Some of the senior members had put in request for transfer to other business units. It was rumoured that four senior legal experts had agreed to an offer from a law firm. Other senior members would sporadically come in late to work, citing health reasons. Almost all senior members now wanted a weekly work-routine to be prepared and given to them in advance so that they could deliver as per the schedule. This insistence on written communication was a problem as urgent problems or ad-hoc requests could not be foreseen and included. Also, normal services to other business units were being unattended to, and there were complaints coming from the unit heads.

    10. Which of the following could have been a better response of Mr. Shiv to Ms. Teknikwali’s request to re-schedule the ERP implementation? (1 Mark)
    A. Look at industry best practices regarding fast-tracking of ERP projects and then commit to a new deadline.
    B. Consult the external consultant who was involved with ERP customization implementation.
    C. Create a smaller team of all the new recruits of BAG and present the idea to them alone.
    D. Eliminate the reliance on external consultants as they would be slow.
    E. Present the idea to BAG members and ask them to look at the feasibility of the entire plan.

    11. Which of the following can be identified as the immediate cause for the problems in BAG? (1 Mark)
    A. Ms. Teknikwali’s decision to appoint Mr. Shiv as project lead for ERP implementation.
    B. The incompetence of the consultant who was implementing the ERP project.
    C. Lack of information about what was happening in the ERP project.
    D. Infighting between new recruits and the older members of BAG group.
    E. Unilateral decision making by Shiv.

    12. How should Mr. Shiv cope with the situation now? Choose the best option, considering Mr. Shiv’s career would be at stake if the ERP project fails, and assuming that for carrying out the options, he has the necessary authority to do so. (1.5 Marks)
    A. Resign from BAG. The project cannot be done as per the re-scheduled time-table. Get a job in another company based on BAG’s brand-name.
    B. Inform Ms. Teknikwali about the situation and get help from her to deal with the old time members. Some old members need to be fired so that others are also disciplined.
    C. Align the new members of the BAG group to his side by promising them rewards at end of the project. Obtain approval from Ms. Teknikwali for the same.
    D. Develop work-routines aligned to the ERP project requirements. Hire extra resources for dealing with other ad-hoc requirements and for the ERP project requirements.
    E. Create a joint team of old members and new members within BAG to take care of ad-hoc requirements. They would be socialized in outbound programmes like mountaineering etc., which will be conducted during week-ends.

    13. Of all the problems being faced in BAG, which of the following is neither discussed nor hinted at? (1 Mark)
    A. Ms. Teknikwali’s lack of faith on older members to implement new ideas.
    B. The inability of the younger members to work along with the older members of BAG.
    C. Mr. Shiv’s intention to impress Ms. Teknikwali by agreeing to a tougher deadline.
    D. Ms. Teknikwali’s lack of understanding of the complexity of an ERP implementation.
    E. Mr. Shiv ‘s lack of understanding of t he sensitivities of the older members of BAG.

    14. After her father’s demise, the best way Ms. Teknikwali could have gone about dealing with BAG group would have been to: (1 Mark)
    A. Discuss with the members as to what their views were about the company and solicit ideas on how to make it grow further.
    B. Retire the entire team and hire a fresh team according to her criteria and her requirements.
    C. Hire an external consultant who would have interacted with the BAG members on her behalf.
    D. Ask the unit managers about the performance of the BAG group’s performance and productivity. After that have discussion with BAG members about unit managers’ performance.
    E. Break down BAG into different sub-groups. It would be easy to tackle one sub-group at a time and do what she wanted to achieve.

    15. It can be inferred from the above case that implementation of an ERP package in an organization requires creation of a team that has:
    (1 Mark)
    A. a mixture of experienced employees and newly graduated employees
    B. only young people with education in top schools and colleges
    C. sufficient number of people who are networked with powerful stakeholders in the organization
    D. right amount of problem solvers along with those who are abreast of the latest ERP technology
    E. people who have been involved with operations for a long duration of time along with people who are aware of the latest in ERP technology

    Answer 10: E

    Answer 11: E

    Answer 12: D

    Answer 13: B

    Answer 14: A

    Answer 15: E

    Set 5
    Answer question nos. 16 to 18 on the basis of the information given in the following case.
    Dev Anand, CEO of a construction company, recently escaped a potentially fatal accident. Dev had failed to notice a red light while driving his car and attending to his phone calls. His well- wishers advised him to get a suitable replacement for the previous driver Ram Singh, who had resigned three months back. Ram Singh was not just a driver, but also a trusted lieutenant for Dev Anand for the last five years. Ram used to interact with other drivers and gathered critical information that helped Dev in successfully bidding for different contracts. His inputs also helped Dev to identify some dishonest employees, and to retain crucial employees who were considering attractive offers from his competitors. Some of the senior employees did not like the informal influence of Ram and made it difficult for him to continue in the firm. Dev provided him an alternative job with one of his relatives.
    During the last three months Dev has considered different candidates for the post. The backgrounds of the candidates are given in the table below.

    Age Educational Qualification Experience Expected
    Salary Remarks
    Sunder 32 Post Graduate Seven 18,000
    years of per
    driving month
    experience Ex-employers are highly satisfied. Their only concern is about his tendency to switch jobs after every six months. Enjoys the newness in every job but tends to lose interest after six months. Not willing to commit for any more than six months.

    Mani 23 Studied up to Standard IX One 8,000
    year per
    month Claims to have more than one year of experience, but can’t provide any certificate to substantiate it. He has received a hike of 2,000 last month on account of his good performance as a driver.
    Chintan 44 Graduate 20 20,000
    years per
    month Working as a driver for the last one year after losing his previous job of a stenographer. He has been forced to take up the job of a driver.
    Bal Singh 40 Literate More than 15,000
    20 per
    years month Cousin of Ram Singh. Substituted Ram as Dev’s driver whenever Ram was on leave. Currently working as a driver with Dev’s in-laws.
    Strongly recommended by Ram. His knowledge and contacts in the firm is as good as Ram’s.
    Chethan 38 Standard XII 10 12,000
    years per
    month Working as a temporary driver with Dev’s major competitor for the last three years. The competitor has offered Chethan’s service to Dev on a temporary basis. Chethan has also expressed his willingness to work on a long term basis, provided he is given an annual increment of 500, which is reasonable as per the market condition.

    Dev is primarily looking for a stable and trustworthy driver, who can be a suitable replacement for Ram. His family members do not want Dev to appoint a young driver, as most of them are inexperienced. Dev’s driver is an employee of the firm and hence the appointment has to be routed through the HR manager of the firm. The HR manager prefers to maintain parity among all employees of the firm, He also needs to ensure that the selection of a new driver does not lead to discontent among the senior employees of the firm.
    16. From his perspective, and taking into account the family’s concerns, Mr. Dev would like to have (1 Mark)
    A. Chethan
    B. Chintan
    C. Bal Singh
    D. Mani
    E. Sunder

    17. Who among the following five candidates is most likely to be rejected by the GM (HR)? (1 Mark)
    A. Chethan
    B. Chintan
    C. Bal Singh
    D. Mani
    E. Sunder
    18. In order to resolve the conflicting preferences, one of Dev’s friends suggested Dev, his family members and the HR manager to identify their most and the least preferred candidates without considering the concerns of other stakeholders.
    I. Dev’s most and least preferred candidates: Bal Singh and Chethan respectively
    II. Family members’ most and least preferred candidates: Bal Singh and Chintan respectively
    III. HR manager’s most and least preferred candidates: Chethan and Bal Singh respectively.
    Which of the above three statements is/are in conformity with the information provided in the passage? (1.5 Marks)

    A. Option I
    B. Option II
    C. Options I and II
    D. Options II and III
    E. Options I, II and III

    Answer 16: C

    Answer 17: C

    Answer 18: A

    Set 6
    Answer question nos. 19 – 20 on the basis of the information given in the following case.
    Vivekanada Memorial Elocution Competition (VMEC) in Viswavijay Public School (VPS) has a history of forty years. Apart from the founder’s day and annual day celebrations, it is the most important event of the school.
    In recent times, due to the increased popularity of reality shows on television channels, and for various other reasons, the elocution competition lost its appeal. Interest of both students and parents has been eroding over a period of time. To ensure sufficient audience, Mr. Ivan, Head of English Department, introduced choral recitation for junior section as a part of elocution competition. Three classes, each consisting of forty students, get short-listed for the final performance of choral singing on the day of VMEC. Most of the parents and family members of these students attend the function to encourage them. This initiative increased the number of people attending the elocution competition.
    Some teachers are unhappy with the emphasis given on the elocution competition, since they are expected to be present at the school on the day of competition, which normally happens on a weekend to accommodate the working parents. The teachers were not granted leave on the day of VMEC and they used to be unhappy regarding this aspect.

    19. Ms Shabina, the principal of VPS, is aware that some of her teachers are unhappy. She wants to be seen as fair and just. Which option is the best one that she should exercise? (1 Mark)
    A. Appoint a committee of teachers, parents and management representatives to come up with possible suggestions within a deadline
    B. Introduce separate music and dance competitions in same format as the elocution competition.
    C. Exercise the authority of the principal because she wants to retain all traditions.
    D. Appoint a committee of teachers to come up with possible suggestions, and ensure that majority of committee members are staunch supporters of the current practices.
    E. Appropriately compensate those teachers who volunteer to come for the extra day

    20. A group of unhappy teachers have come up with a list of action plans for the consideration of their colleagues. The action plans are listed below.
    I. Exposing Mr. Ivan’s intentions behind the inclusion of choral recitation.
    II. Conduct an open house discussion to gauge the unhappiness and to identify possible solutions.
    III. Introduce music and dance competitions in same format as elocution competition
    IV. Demand compensation for their work on the day of VMEC.
    Mr. Zacharia, one of the senior teachers and a well wisher of VPS, is asked to go through the action plans and make recommendations that benefits VPS the most. He would recommend: (1 Mark)

    A. Options I and II
    B. Options II and IV
    C. Options I and III
    D. Options I and IV
    E. Options I, II, and IV

    Answer 19: B

    Answer 20: E
    Set 7
    Answer the questions from 21 to 23 based on the case given below.
    Ethical – a person is called unethical, when he deviates from principles. The principles and their use is often guided by two definitions:
    Morals: society’s code for individual survival
    Ethics: An Individual’s code for society survival
    Naresh was a small time civil contractor in a small city. His major clients were the residents who wanted ad-hoc work like painting, building repairs, building extensions to be done. His just prices had made him a preferred contractor for most of the clients who preferred him over other civil contractors. Always he followed the principle that client had to be kept happy – only by doing so it would be a win-win situation for both. However due to the unpredictability of such orders from residents, Naresh used to be idle for substantial part of the year. As a consequence, he could not expand his business. His two children were growing up and his existing business could not support their expenses. The medical expense of his elderly parents was another drain on his resources. The constant rise of prices in medical care and medicines was another issue. For Naresh, family’s concern was predominant. Naresh was, therefore under pressure to expand his business. He was the sole earning member of his family, and he had to ensure their well being. He thought that by expanding his business, not only he would be able care for his family in a better way, as well as offer employment to more number of masons and labourers. That would benefit their families as well. Naresh drew the boundary of his society to include himself, his family members, his employees and their family members.
    For expansion, the only option in the city was to enlist as a contractor for government work. Before deciding, he sought advice from another contractor, Srikumar, who had been working on government projects for a long period of time. Srikumar followed the principle of always helping others, because he believed that he would be helped back in return some day. Srikumar had just one advice “The work is given to those who will win the bidding process and at the same time will give the maximum bribe. Prices quoted for work have to include bribes, else the bills will not get cleared and the supervisors will find multiple faults with the execution of work. This ensures survival and prosperity for contractors.”
    When asked about other contractors, Srikumar said “The government contractors are like a micro society in themselves, almost like a brotherhood. Within that, they are highly competitive; however towards any external threat they are united to ensure no harm happens to any of their members.”

    21. Naresh decided to work as a government contractor. Following Srikumar’s advice, he inflated the prices so that he could pay the bribes out the bills received. (1.5 Mark)
    A. Naresh is now totally unethical.
    B. Naresh cannot be called totally ethical.
    C. Naresh can be called ethical when it suits him.
    D. Naresh is ethical to some extent.
    E. Naresh is being totally ethical.

    22. A new supervisor had joined a government department where both Naresh and Srikumar were bidding for work. During the bidding process for a particular project, in an open meeting with all contractors and officers from the department, he produced a document which had the rates at which Naresh had worked for private clients for similar building related work. He accused Naresh and Srikumar of over-pricing for government work and threatened to disqualify them from the bidding process, if the rates are not bought down. Faced with that situation, Naresh gave a written reply that “I use materials of inferior quality for private work, and that is the reason for price difference”. Srikumar supported Naresh in the meeting by saying that he had seen Naresh’s work and he agreed. In this situation, it can be concluded that: (1.5 Marks)
    A. Both Naresh and Srikumar are unethical.
    B. Naresh is unethical while Srikumar is not.
    C. Both Naresh and Srikumar are ethical.
    D. Naresh is ethical to a large extent, but no conclusion can be made about Srikumar.
    E. Srikumar is unethical, but no conclusion can be made about Naresh.

    23. Lankawala, another contractor, when faced with the new supervisor’s demand to reduce prices for government work, asked him to guarantee that no bribes would be taken, and only then prices would be reduced. This was said in front of everyone. At this the supervisor forced Lankawala out of the meeting and threatened to black-list him. Lankawala did not say anything and walked away. Blacklisting of a contractor by one government department implied that Lankanwala would not be able to participate in any government departments’ works.
    In late evening, the city was abuzz with the news that the supervisor’s dead body was seen on the railway tracks. In the investigations that followed, no one who attended the meeting recounted the happenings in the meeting to the police. Getting involved in murder cases could lead to unpredictable outcomes such as becoming the potential suspect, or an accessory to the crime. Furthermore, cases could drag on for years, and one would have to appear in court as witnesses in response to court’s summons. This, for a contractor, was a serious threat to his business due to the disruptions created. However, Naresh wanted to speak out but was pressurized by Srikumar and other contractors not to, and as a result he did not. Due to this, the case was closed unresolved with no one found guilty.
    In this situation, it can be concluded that: (2 Marks)
    A. Srikumar is immoral, but ethical, while Naresh is not unethical.
    B. Naresh is ethical and moral, while other contractors are immoral and unethical.
    C. Naresh, Srikumar and other contractors are both immoral and unethical.
    D. Other contractors are moral, and they prevented Naresh from being immoral.
    E. Other contractors are unethical, but no conclusion can be made about Naresh.

    Answer 21: A

    Answer 22: A

    Answer 23: D

    Set 8
    Answer question nos. 24 – 25 on the basis of the information given in the following case.
    Saral Co. is operating in seven north-eastern states of the country. The organization has a history of participative decision making, wherein people deliberate openly about pros and cons of every important decision, and a broad consensus is taken before taking the final decision. In Saral Co. every employee gets a salary proportional to the sales achieved. A new General Manager (GM) joined during the beginning of this month and challenged the organization’s sole focus on sales to determine salaries. He urged the top management to include two more additional parameters in determining the salaries of the employees, viz. collection of information about competitors and the quality of relationship with the retailers.

    24. Manohar, the highest earning employee for the last three years, vehemently opposes the GM’s proposal. Which of the following could be most likely reason for him to oppose the proposal? (1Mark)
    A. He considers the proposal as a serious threat to his favourable position in Saral Co.
    B. He is not interested in collecting the information regarding competitors.
    C. No clarity regarding the relative importance of the three parameters.
    D. He is not interested in maintaining quality relationship with retailers.
    E. He may need to work harder to earn the highest salary.

    25. The top management refused to implement the proposal of new GM from the beginning of next month. Which of the following could be the most justified reason for the management’s refusal? (1Mark)
    A. To ensure that no manager will get credit for a major change soon after joining.
    B. To avoid attracting criticism for their failure to implement a similar scheme.
    C. His past experience is limited to seven north-eastern states only.
    D. The GM is new to the organization and he would require some time to implement the new plan.
    E. The top management would need time to deliberate and get consensus.
    Answer 24: E

    Answer 25: E

    While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course.

    You can also see : XAT Decision Making Section – Golden Principles for tackling questions related to Management Issues

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  • Decision Making for XAT 2013 – Previous Year Questions

    Individual Questions:

    1. Over the last years, Bank of Bharat has seen the number of its retail customer accounts drop by over 40 percent. Over the same period, the share price of Bank of Bharat has increased by more than 80 percent. This amazed a few investors, who believe that a bank’s share price should drop if its number of customers drops. Which of the following, if true over the last years, best accounts for the observed movement in the price of Bank of Bharat’s equity shares?

    A. Two years ago Securities and exchange Board started an investigation on the bank for accounting irregularities, but last year the company was cleared of all charges.
    B. The bank recently implemented a highly publicized program for free home loans.
    C. The bank has been switching its customer base from retail customers to commercial customers, which now accounts for over 75 percent of the bank’s revenues.
    D. There have been many new banks, which have entered retail banking business over the last five years .
    E. The bank is known to be the best playmate in the industry.

    2. Gastric bypass surgery has been shown to be effective at helping extremely obese people lose Weight. Some patients have lost as much as 300 pounds after undergoing the surgery, thereby substantially prolonging their lives. Despite the success of the treatment, most doctors have not embraced the surgery. Which of the following statements, if true, best accounts for the lukewarm reaction of the medical community to gastric bypass surgery?

    A. Gastric bypass surgery carries a high risk of serious complications, including death.
    B. Obesity is one of the leading contributors to heart disease and hypertension, two leading causes of death.
    C. Incidences of obesity among the Indian urban middle class population have been increasing consistently for the last three decades.
    D. Many patients report that losing weight through diets is ineffective, since they usually gain the weight back within six months.
    E. Most health insurance plans will cover the cost of gastric bypass surgery (or morbidly obese patients at high risk of heart disease

    3. Students from four sections of a class accompanied by respective class teachers planned to go for a field trip. There were nineteen people in all. However, on the scheduled day one of the four teachers and few students could not join the rest. Given below are some statement about the group of people who ultimately left for the trip.

    I. Section A had the largest contingent.
    II. Section B had fewer students than Section A
    III. Section C’s contingent was smaller than Section B.
    IV. Section D had the smallest contingent
    V. The product of the number of the students from each section is a multiple of 10.
    VI. The number of students from section C is more than 2
    VII. The product of the number of students from each section is a multiple of 24.
    VIII. The largest contingent has more than 4 students.
    IX. Each section contributed different number of students

    The statement that taken together can give us the exact number of students from each section:

    A. I, II, III, IV, VI
    B. I, VI, VIII, IX
    C. I, II, III, IV, V, VI
    D. I, II, III, IV, VI, VII
    E. I, IV, VI, VII, IX

    4. There is a lot of interest in the first five ranks for Class XI students. One student guessed the rank order as Ankita, Bhagyashree, Chanchal, Devroopa and Esha. Later upon announcement of the result, it was found that not only did he get each student out off her true position, none of the students in his ranking correctly followed her immediate predecessor. Another student guessed Devroopa, Ankita, Esha, Chanchal and Bhagyashree. Even his guess was wrong. It was found that he had got two positions correct, and two students in his ranking correctly followed their immediate predecessors. Which of the following is true about the correct rank order?

    A. Ankita got the third position
    B. Bhagyashree got the fourth position
    C. Chanchal got the second position
    D. Devroop stood first
    E. Esha got the fourth position

    Answer 1: C

    Answer 2: A

    Answer 3: C

    Answer 4: A

    Set 1

    Answers Questions 5 to 7 based on the information given below.

    It was the end of the performance review cycle for the year 2012 when you asked your subordinates about any problems they were facing. Natrajan told you that an important member of his team, Vardarajan, who had also won the best performance award for the year 2011, was not taking interest in work. Despite Natrajan’s counseling, no change was noticed in Vardarajan, rather his attitude deteriorated. You had also received such information from other employees. You had not interfered hoping that Natrajan, an experienced hand, would be able to solve the problem. But now that Natrajan himself brought this to your notice, you decided to call Vardarajan and counsel him.

    5. Which of the following could be the most unlikely reason for Vardarajan’s declining involvement in workplace?

    A. Vardarajan does not find the work challenging enough as he has already achieved the best performance award.

    B. Others in the organization have been trying to pull him down, since he was declared best performer.

    C. Vardarajan was not promoted after his superlative performance, while another colleague, Sudararajan, was prompted although he was not as good a performer as Vardarajan.

    D. After putting in lots of effort for the superlative performance, Vardarajan felt burnt out.

    E. Vardarajan was appreciated by his bosses for achievement last year.

    6. Vardarajan did not find his work challenging enough, given below are some steps that could be taken to motivate him:

    1. Give Vardarajan a more challenging assignment

    2. Transfer Vradarajan from Projects department to Training department

    3. Ask him to take a vacation for two months

    4. Send him for further training on decision making under stress

    Which of the following combinations would be the most appropriate?

    A. 1, 2, 3

    B. 1, 3, 4

    C. 1, 4

    D. 2, 3, 4

    E. 1, 2, 3, 4

    7. You overheard a conversation between Vardarajan and his colleague over an official dinner. He expressed his unhappiness about the fact that good performers were not given their due credit while poor performers were promoted faster. If Vardarajan is right, which of the following steps would help in creating better organization?

    A. Promote Vardarajan with immediate effect.

    B. Ensure that performance is objectively and transparently assessed.

    C. Give another assignment to Vardarajan.

    D. Give higher salary to Vardarajan.

    E. Fire Vardarajan.

    Answer 5: E

    Answer 6: C

    Answer 7: B

    Set 2

    Answers Questions 8 and 9 based on the information given below.

    Island of growth was witnessing a rapid increase in GDP. Its citizen had become wealthier in recent times, and there had been a considerable improvement in the standards of living. However, this rapid growth had increased and nepotism in the Island. In the recent times, a fear had gripped the population that corruption would destroy the inclusive nature of the society and hinder economic progress. However, most citizens had kept quite because:

    a. They had benefitted from the corruption indirectly, if not directly.
    b. They did not have time and energy to protest.
    c. They did not have courage to rise against the established power centers.

    There was a need to remove corruption but no one was willing to stick his neck out. Many politicians, bureaucrats and private organization were corrupt. Media and intellectuals kept quite as they benefitted indirectly from corruption. The common man was sacred of state’s retribution and the youngsters feared insecure future.

    Against this background, an old, unmarried and illiterate of high moral and ethical authority, Shambhu, decided to take on the issue of corruption. He sat on a hunger strike in the heart of the capital city of the Island. Shambhu demanded that the Government should constitute new laws to punish the corrupt across all walks of life, Media and the citizens of the island gave massive support to Shambhu.

    Buckling under the pressure, the Government promised to accept Shambhu’s demands. He ended the hunger strike immediately following the Government’s announcement. Shambhu became the darling of the media. He used this opportunity as a platform to spread the message that only citizens with an unblemished character should be allowed to hold a public office.

    A few months later, it was found that the government had not fulfilled any of its promises made to Shambhu. Infuriated, he was thinking of launching another inland-wide protest. However, this time, he sensed that not many people and media person were willing to support him.

    8. Read the following statements:

    1. People’s latent anger against corruption
    2. Shambhu’s moral courage
    3. Hungary media looking to raise issues
    4. Raising income level
    In your opinion, which combination of the above statements is the most unlikely reason for Shambhu’s initial success?

    A. 1, 2, 4

    B. 3, 4

    C. 1,3

    D. 1, 3, 4

    E. 1, 2, 3, 4

    9. Which of the following could be the most likely reason for decline in public support for Shambhu?

    A. The common man had become sick and tired of Government’s inaction against rising corruption.

    B. Shambhu was old and he lacked energy to garner the same support that he enjoyed from the media and the public in the initial stages.

    C. The general public may have realized that Shambhu was focusing too much on “indirect involvement’ in past incidences of corruption. Common men found it difficult to live up to the high standards set by Shambhu

    D. Shambhu’s colleagues were misleading him.

    E. Shambhu came from a village, while most of his supporters were city dwellers.

    Answer 8: B

    Answer 9: C

    Set 3

    Answers Questions 10 to 12 based on the information given below.

    Head of a nation in the Nordic region was struggling with the slowing economy on one hand and restless citizens on the other. In addition, his opponents were doing everything possible to discredit his government. As a famous saying goes, ‘There is no smoke without a fire”, it cannot be said that the incumbent government was doing all the right things. There were reports of acts of omission and commission coming out every other day.

    Distribution of public resources for private businesses and for private consumption had created a lot of problems for the government, it was being alleged that the government has given the right to exploit these public resources at throw-away prices to some private companies. Some of the citizens were questioning the government policies in the Supreme Court of the country as well as the media. In the midst of all this, the head of the nation called his cabinet colleagues for a meeting on the recent happenings in the country.

    He asked his minister of water resources about the bidding process for allocation of rights to setup mini hydel-power plants. To this, the minister replied that his ministry had followed the laid out policies of the government. Water resources were allocated to those private companies that bid the highest and were technically competent. The minister continued that later on some new companies had shown interest and they were allowed to enter the sector as per the guidelines of the Government. This, the minister added, would facilitate proper utilization of water resources and provide better services to the citizens. The new companies were allocated the rights at the price set by the highest bidders in the previous round of bidding. After hearing this, the head of the nation replied that one would expect the later allocations to be done after a fresh round of bidding. The minister of water resources replied that his ministry had taken permissions from the concerned ministries before allocating the resources to the new companies.

    10. Media reports suggested that the minister of water resources had deliberately allocated the water resources at old prices to the new companies, and in return some received kickbacks. However, the minister denied these charges. His counter argument was that he followed the stated policies of the Government and it is very difficult to price a scarce resource. He also said that the loss that the media is talking about is notional and in reality the Government and the citizens have gained by the entry of new players. Which of the following is the most appropriate inference?

    A. If benefit to the citizens is higher than notional losses then it is not unethical.

    B. If benefit to the citizens is lower than notional losses then it is unethical.

    C. If benefit to the citizens is higher than actual losses then it is not unethical.

    D. I benefit to the citizens is lower than actual losses then it is unethical

    E. All of the above A, B, C and D are inappropriate.

    11. Subsequently, the minister questioned the role of the media in the Whole affair. He said that the media cannot act like a reporter, prosecutor and judge at the same time. Mr. Swamy, an independent observer, was asked about appropriateness of the minister’s opinion. What should be Mr. Swamy’s reply?

    A. Media has been rightly accused by the minister.
    B. Minister statement may be factually incorrect.
    C. Media has rightly accused he minister.
    D. Media has wrongly accused the minister.
    E. None of above

    12. Looking at the public unrest and discontent, the Government’s anti-corruption branch was entrusted with the task of investigating the matter. Within a week’s time the branch charge sheeted top corporate managers and the minister for wrong doings. Mr. Swamy was again asked to identify the guilty. Who should Mr. Swamy pick?

    A. Only corporate managers.
    B. Only the minister.
    C. Only the Head of the nation.
    D. All of the above
    E. None of the above.

    Answer 10: E

    Answer 11: B

    Answer 12: D

    Set 4

    Answers Questions 13 to 16 based on the information given below.

    Prof. Vijya, the chairperson of the Faculty Academic Committee (FAC), was trying to understand the implications of decisions taken by the Student Placement Committee (SPC) on placement issues.
    It was alleged that Biswajit, a final year student, inflated his grades in his bio-data that was sent to the recruiters. The President of SPC requested the FAC to debar Biswajit from the campus recruitment process. When the matter was brought up for discussion in FAC, Ione of the professors remarked that Biswajit too should be allowed to defend himself. When Biswajit arrived for the meeting the situation became even more challenging.

    Biswajit raised the issue that many other students who had misrepresented grades to get coveted jobs had gone scot-free. He alleged that these students were close to the Presidents SPC and therefore, no action was taken against them. He stated that somebody has deliberately manipulated his grades in the bio-data.
    This allegation confused the members and it was decided to adjourn’ the meeting. Vijya was to decide on the next course of action.

    13. If you were what in your opinion would be the most appropriate action?

    A. Debar Biswajit and the President of SPC from the placement process as they have failed to uphold the rules of the SPC.
    B. Suspend Biswajit and the President of SPC.
    C. Constitute a fact finding committee to investigate the matter and ask them to submit a report to you within a week’s time.
    D. Apprise the corporate recruiters of the situation and assure them that corrective actions will be taken.
    E. Both options C and D.

    14. It was found that a large section of the students have been indulging in such practices. Unfortunately, the HR manager of a much coveted campus recruiter, who is an alumnus of the college, came to know about this. Considering yourself in the position of that HR manager, what would be your reaction?

    A. Express your displeasure and stop any further recruitment from the college.
    B. Talk to your contact in the college and try to find out the truth.
    C. Do not change anything and continue the process as if nothing has happened.
    D. Ask the college to send a fresh set of bio-data as you wanted verified grades of the students.
    E. Ask the SPC to resend the details of the short listed students including their verified grades.

    15. As a potential entrant you are having an informal Facebook chat with one of the college seniors. You wanted to know about the pay packages of the graduating students. The senior replied that one will be able to understand this only after joining the college. He did not reveal any information but suggested that it is not very difficult to get a high salary job as you have already started networking. He also cautioned that you should not believe any rumors and you should directly contact the student body for any further information. What will be your most appropriate choice for seeking further information about placements?

    A. This conversation will increase your interest and you will network more with the students of the college for increasing your chances of getting a high salary job.

    B. You will contact the college authorities to get more insights about the placement process.

    C. You will start networking with the HR managers to understand their requirements.

    D. You will try to contact the President of SPC

    E. You will contact your other Facebook friends to find out about the placement activities at the college.

    16. Vijya found that there were many such cases of grade inflation. She was giving final touches to the report when her attention was diverted by a phone call on her personal cell phone. It was from an unlisted number. The caller conveyed to her that it will be in her interest as well as in the interest of the college if the report is not presented to the Director. The caller also told her these findings will change nothing and only result in bad publicity for the college. The caller identified himself as a well-wisher of the college before hanging up. Consider yourself in Vijya’s position and choose an appropriate decision from the following choices.

    A. Disregard the phone call and do not share its details with others.
    B. Understand the implications of the phone call and apply for a leave.

    C. Call up the Director, tell him about the phone call, and excuse yourself from the responsibility.

    D. Talk to the Director and seek his opinion.

    E. Constitute a different committee to investigate the “phone call” and carry on with your other activities.

    Answer 13: E

    Answer 14: D

    Answer 15: B

    Answer 16: D

    Set 5

    Answers Questions 17 to 19 based on the information given below.

    Marathe is a vice President in a construction equipment company in the city of Mumbai. One day, his subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is overbearing and is generally a bad influence on the team.
    Marathe called upon Gore, another project manager, and sought further information on Kale. Gore recalled that colleague, Lakhote (who was also Kale’s former boss) had made a few remarks on his appraisal report about Kale was not fit for further promotion as he was emotionally unstable to work in groups though he had seven years of work experience. Lakhote had described Kale as too authoritative to work under anyone Lakhote Had further told Gore that Kale had an ailing wife, and an old mother, who does not want to stay with his wife.

    17. Consider the following solutions to the problem mentioned above:

    1) Marathe should transfer Kale to Chennai office
    2) Marathe should try and verify the facts from other sources as well
    3) Kale should be sacked
    4) Kale should be demoted
    5) Marathe should suggest Kale to visit a family counselor

    Which of the following would be the most appropriate sequence of decisions in terms of immediacy: starting from immediate to a longer term solution.

    A. 2, 1, 5

    B. 1, 4, 2

    C. 2, 3, 4

    D. 2, 5, 1

    E. 2, 5, 4

    18. Marathe sought an appointment with Lakhote to find out ways to help Kale. Lakhote is of the opinion that the company’s responsibility is restricted to the workplace and it should not try to address the personal employees. If Marathe has to agree to Lakhote’s opinion, which of the solutions presented in the previous question would be weakened:
    A. 1
    B. 2
    C. 3
    D. 4
    E. 5

    19. Which of the following statements, if true would weaken the decision to sack Kale the most?
    A. A Government of India study established that employees with 5-10 years of work experience tend to have conflicting responsibilities at home and office. However these conflicts wither away after 10 years of experience.
    B. Another article published in the magazine, Xaviers Quarterly, highlighted that employee’s problems at home affect their performance at work.
    C. In the latest issue of a reputed journal, Xaviers Business Review, it was published that most top managers find it difficult to work in a group.
    D. It was published in Xaviers Management Review (another reputed journal) that individuals who cannot work in teams find it difficult to adjust to a new location.
    E. Bhonsle was of the opinion that emotionally unstable persons find it difficult to get back to normal working life.
    Answer 17: A

    Answer 18: E

    Answer 19: A

    Set 6
    Answers Questions 20 to 21 based on the information given below.

    A teacher wanted to administer a multiple choice (each question having six choices) based quiz of high difficulty levels to a class of sixty students. The quiz had sixty questions. The probability of selecting the correct answer for a good students and a brilliant student was 0.2 and 0.25 respectively. The poor students had no learning advantage. The teacher did not want students to cheat but does not have time and resources to monitor. All students were seated serially in 10 rows and 6 columns.

    20. Is it possible for teacher to detect cheating without monitoring? Choose the statement that best describes your opinion:

    A. It is not at all possible; teacher will have to introduce technology if there is no human support.

    B. It is always possible; but teacher has to calculate exact answer.

    C. It is possible when many students sitting next to each other have the same incorrect answers for multiple questions. However, there can be a small error in judgment.

    D. It is possible when many students sitting next to each other have the same correct answers for multiple questions. However, there can be a small error in judgment.

    E. It is possible only for poor students but not for good and brilliant students. However, there can be a smaller error in judgment.

    21. Three good students were sitting next to each other. What is the probability of them having the same incorrect choice for four consecutive questions?
    A. 256/390625
    B. 256/3125
    C. 4/3125
    D. 1/3125
    E. Cannot be calculated

    Answer 20: D

    Answer 21: E

    Set 7
    Answers Questions 22 to 25 based on the information given below.

    The Big and Colourful Company
    You are running “Big and Colourful (BnC)” company that sells book to customers through three retail formats:
    a. You can buy books from bookstores
    b. You can buy books from supermarket
    c. You can order books over the Internet (Online )
    Your manager has an interesting way of classifying expenses: some of the expenses are classified in terms of size: Big, Small and Medium; and others are classified in terms of the colors, Red, Yellow, Green and Violet. The company has a history of categorizing overall costs into initial costs and additional costs. Additional costs are equal to the sum of Big, Small and Medium expenses There are two types of margin, contribution(sales minis initial costs) and profit (contribution minus additional costs).

    Given below is the data about sales and costs of BnC :

    Each of the Big, Small and Medium cost is categorized by the manager into Red, Yellow, Green and Violet costs. Breakdown of the additional costs under these headings is shown in the table below:

    Red, Yellow, Green and Violet costs are allocated to different retail formats. These costs are apportioned in the ratio of number of units consumed by each retail format. The number of units consumed by each retail format is given in the table below:

    22. Statement I: Online store accounted for 50% of the sales at BnC and the ratio of supermarket sales and book store sales is 1 : 2

    Statement II: Initial cost is allocated in the ratio of sales.
    If you want to calculate the profit/loss from the different retail formats, then
    A. Statement I alone is sufficient to calculate the profit/loss.

    B. Statement II alone is sufficient to calculate the profit/loss.

    C. Both statements I and II are required to calculate the profit/loss.

    D. Either of the two statements is sufficient to calculate the profit/loss.

    E. Neither Statement I nor Statement II is sufficient to calculate the profit/loss.

    Based on your answer to the above question, answer the questions 23 and 24 :
    23. What is the profit from “online” sales?
    A. 0
    B. -310
    C. +20
    D. +450
    E. Cannot be determined from the given information

    24. Which retail format is least profit making for BnC?
    A. Online
    B. Supermarket
    C. Book Store
    D. All formats are loss making.
    E. All formats are profit making.

    25. Which retail format gives the highest profit for BnC?
    A. Book Store
    B. Supermarket
    C. Online
    D. All are equally profitable.
    E. Cannot be determined from given information

    Answer22: C

    Answer 23: D

    Answer 24: B

    Answer 25: A

    While these are the complete questions and answers, if you want to prepare for Decision Making for XAT 2021, do have a look at our online course.

    Hope you found this document useful.

    XAT Decision Making Questions(2008-20)
    FREE PDF for Download

    You can also see : XAT Decision Making Section – Golden Principles for tackling questions related to Management Issues

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