Instructions

Directions for following three questions: Answer the following questions based on the information given below: There are 100 employees in an organization across five departments. The following table gives the department-wise distribution of average age, average basic pay and allowances. The gross pay of an employee is the sum of his/her basic pay and allowances.

There are limited numbers of employees considered for transfer/promotion across departments Whenever a person is transferred/promoted from a department of lower average age to a department of higher average age, he/she will get an additional allowance of 10% of basic pay over and above his/her current allowance. There will not be any change in pay structure if a person is transferred/promoted from a department with higher average age to a department with lower average age.

Questions below are independent of each other.

Question 48

What is the approximate percentage change in the average gross of the HR department due to transfer of a 40-year old person with basic pay of Rs. 8000 from the Marketing department?

Solution

Man's new gross income = 8000 + (8000*0.8) + (8000*0.1) = 15200

Average gross income of HR = 5000 + (5000*0.7) = 8500

New average = $$\frac{8500*5 + 15200}{6}$$ = 9616

% increase = $$\frac{1116}{8500}*100$$ = 13.12% => 13% approximately.


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