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 50

# If two employees (each with a basic pay of Rs. 6000) are transferred from Maintenance department to HR department and one person (with a basic pay of Rs. 8000) was transferred from Marketing department to HR department, what will be the percentage change in average basic pay of HR department?

Solution

The new average basic pay of HR dept. would be (5000*5 + 6000*2 + 8000)/8 = 45000/8.

So % change in basic pay is [(45000/8) - 5000]/5000 = 12.5%.

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