Decision Reasoning Making

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Theory

Questions on Decision Making are asked quite frequently in Banking Exams. The key in Decision Making questions is to take an unbiased decision by leaving the person involved out of the equation.

Theory

There is only one correct answer in every decision making question. The decision taken should not change depending on the person taking the decision.

Solved Example

The criteria for getting selected to a college are as follows:

1. The candidate must have scored at least 50% in 12th grade
2. The candidate must have scored at least 60% in 10th grade
3. The candidate must have scored at least 70% on the entrance test

Ravi scored 51% in 12th grade, 62% in 10th grade and 68% on the entrance test. He has an extremely good profile with achievements in sports and other extracurricular activities. Which of the following decisions should be taken regarding Ravi’s selection to the college?

a) Ravi should be given a seat
b) Ravi should not be given a seat
c) Ravi’s case must be referred to the Principal of the college
d) Ravi’s case must be referred to the head of the Admissions Committee
e) The case should be discussed with a superior

Explanation: In this case, Ravi passes criteria number 1 and 2, but fails to pass the third criterion. So, Ravi should not be given a seat in the college.

Tip

The decision taken should be based on facts presented in the question. Use the facts, think logically and arrive at a conclusion.

Tip

Take the person out of the equation.

Tip

Never take a biased decision.

Tip

Do not make any assumptions about the data. Stick to what is given in the question and instructions.

Tip

Check all the options carefully. Sometimes two options are quite close to each other and only a very careful examination of both can take you to the correct answer.

Theory

Check if the case given in the question fails to clear any must pass criteria. In such a case, the decision is a straight reject.

Solved Example

The sanctioning of housing loan to a person is based on the following criteria:

1. The person should have an account with the bank
2. The CIBIL score of the person should be more than 800
3. The person’s monthly income should be at least 3 times the EMI to be paid for the loan

If a person satisfies all the criteria except 1, his case should be referred to the Head Clerk. If a person satisfies all the criteria except 2, his case should be referred to the Bank Manager.

Murthy is applying for a housing loan at State Bank of India, Madhapur branch. He has an SBI account in Secunderabad branch and his CIBIL score is 850. The EMI on the loan works out to be Rs 30000 and Murthy’s monthly salary is Rs 1 lakh. Which of the following decisions should be taken regarding approving housing loan for Murthy?

a) Housing loan can be approved
b) Housing loan cannot be approved
c) The case should be referred to the Head Clerk
d) The case should be referred to the Bank Manager
e) None of the above

Explanation: Murthy satisfies all the required criteria. Note that the person applying for a loan should have an account with the bank. It need not necessarily be with the same branch at which he is applying the loan. So, the housing loan can be approved in this case. Option a) is the correct answer.

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