XAT 2012 Question 56


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.

Question 56

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?


Since Mahesh has been the highest earning employee for the last 3 years, he has been working very hard to get his sales getting reflected in his salary. Now, because of the inclusion of two more parameters, the most plausible explanation is the increase in the already increased workload.

Since option E is right on the money, the correct option is E.

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