XAT 2024 Decision Making Important Questions [Download PDF]
Decision Making Questions for XAT 2024 exam – XAT Classification questions pdf by Cracku. XAT 2024 aspirants! As you gear up for one of the most challenging MBA entrance exams, you’re likely aware that Decision Making plays a pivotal role in determining your success. XAT’s Decision Making section is distinctive, testing not just your analytical skills but also your ethical judgment and decision-making abilities. In this blog post, we’ve curated a set of important questions that will not only help you understand of XAT Decision Making but also provide insights into the type of scenarios you might encounter. Whether you’re a seasoned aspirant looking to fine-tune your skills or a newcomer navigating the intricacies of this section, these questions are tailored to equip you for success.rs.
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Instructions
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 realized 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 realized 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 the dilemma could be resolved. He fixed up a meeting with Bhola to answer Bhola’s queries.
Question 1:Â Should Bhola still think of doing business?
a)Â Yes, where there is a will, there is a way.
b)Â No, saving the Earth for our children is more important than earning money.
c)Â Yes, Bhola should do business while ensuring no environmental damage is done.
d)Â Yes, but only if the government puts strict environment regulations in place.
e)Â Bhola should stop thinking about such a dilemma.
1) Answer (C)
Solution:
It is given that Bhola wants to earn money which is necessary for living. So, he should start his business. However, he is concerned about the environment. So, he must ensure minimal, if not zero, damage to the environment. Option C is the most relevant in this context.
Question 2:Â 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)Â Stop environmental degradation by stopping the developmental activities.
b)Â Forget about the environment; think about the people as they are the vote banks for politician to come back to power.
c)Â Suggest that the government should try to promote eco-tourism, which would be controlled and regulated by the government, as the government could think about the welfare of majority of stakeholders.
d) Suggest that the government should promote eco-tourism with public private partnership with the involvement of NGO’s, so that there are checks and balances for inefficiencies and promotion for synergetic efforts between government and private entrepreneurs.
e) Involvement of impartial entities like NGO’s who would provide a fair assessment of the policies.
2) Answer (D)
Solution:
Option A is too extreme because both the Government as well as local people want development.
Option B is also extreme because forgetting about the environment would be disastrous and Bhola does not want that.
Between option C and option D, D is a better choice because in option D, it is mentioned that the government would work in coordination with private entities so that there would not be any harm to any of the parties involved. Option C talks about giving total control in the hands of government which might strangle the prospects of private enterprises.
Option E is holding government responsible for the degradation of environment which is not correct as people are also equally responsible.
Hence, option E is the correct answer.
Question 3:Â 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)Â Charge environmental cess from all businesses operating out of Himalayas.
b)Â Charge cess from anyone who pollutes the environment, it be citizens or industries and reward those who have contributed to afforestation the most.
c)Â All profit making organizations have to take responsibility of afforestation proportionate to their profitability.
d)Â Think about maximising the revenues and forget about the environment.
e)Â Institute a Green Valley Reward, which would be given to businesses highly active in afforestation efforts.
3) Answer (B)
Solution:
The motive is to stop the degradation of the environment. So, only afforestation won’t work. Steps which would discourage people from polluting the environment should be taken. Option B is correct.
Option E only mentions about rewarding those who are active in afforestation efforts, but has no provision for punishing those who pollutes the environment. Same is true for option C too.
Option D is too extreme and cannot be suggested.
Option A has two issues – It is suggesting to charge cess from all businesses without taking into consideration that some businesses might not be polluting the environment. Also, it is assuming that only business pollute environment and is not holding people responsible for it.
Hence, option B is the correct answer.
Question 4:Â 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)Â Accuse the opposition of having vested interests as the opposition leaders were denied licences for opening new hotels.
b)Â Point out the improvement in environment since the implementation of pro- environment policies.
c)Â 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)Â 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)Â Call the charges as baseless accusations being used to malign the good work he had done.
4) Answer (C)
Solution:
Replying an accusation with another without proper evidence and justification will be futile. Options A and EÂ are discarded.
Option B is not something which the opposition disagrees with. The contention is of the the increasing unemployment and not regarding the effectiveness of Bhola’s policies.
Between options C and D, option C is better because it considers the overall employment while option D considers employment in a specific cleaning drive.
Hence, option C is the correct answer.
Instructions
Analyse the following caselet and answer the question that follow:
Chatterjee, the MLA of Trikathapur, owes his election success to his close friend and businessman Ghosh. The victory had appeared unlikely for Chatterjee after the arrival of Bhowmick, a budding politician with hordes of money. However, his clean image along with Ghosh’s money ensured Chatterjee’s resounding victory.
Question 5:Â After the elections, Ghosh requested Chatterjee to sanction the land adjoining his factory, for expansion. However, the requested government land was a green belt reducing harmful pollution from the factory.
Which of the following is the BEST option for Chatterjee in these circumstances?
a)Â Chatterjee should approve the sale only after Ghosh plants a large number of trees around the factory and the city.
b)Â Chatterjee should oblige Ghosh provided he recruits 20 locals as his employees on condition that they plant and maintain a tree each in their locality.
c)Â As Ghosh is paying market rates Chatterjee should approve the sale with no rides.
d)Â Chatterjee should approve the sale and ensure that the green belt is shifted to a different tract of land outside the city, purchased from the proceeds of the sale.
e)Â Chatterjee should unconditionally approve the transfer of the land to Ghosh as a token of gratitude.
5) Answer (A)
Solution:
Options C and E are extremes and hence, cannot be the answer.
Shifting the green belt outside the city will not help in mitigating pollution inside the city. Option D is incorrect.
Recruiting 20 people who plant a tree each will not be able to compensate for the effect that a loss of green belt would have. Option B is incorrect.
Option A will easily fill the gap left after loss of green belt.
Hence, option A is the correct answer.
Question 6: Inspired by Bhowmick’s manifesto, Chatterjee is contemplating a green policy which can adversely affect Ghosh’s business interest.
Which of the following actions from Ghosh is likely to convince Chatterjee NOT to pursue this policy?
a)Â Request Chatterjee to defer implementation of the green policy by 3 years, the time needed to make his factory green.
b) Remind Chatterjee that it is for his clean image that people voted him and not for Bhowmick’s green policy.
c)Â Warn Chatterjee that all industrialists will turn against him and despite his clean image he may be hated by the industry.
d) Appeal to Chatterjee’s sympathy citing the potential loss his business will suffer if the policy were to be implemented.
e)Â Threaten Chatterjee that he should not take his loyalty for granted as Bhowmick has invited him to join his party.
6) Answer (B)
Solution:
Options C and E are extreme. Option D would imply that Chatterjee has to forego his plan regarding implementation of the green policy because of his friend which is not ethical. Option A implies that Chatterjee would have to delay the implementation in favour of his friend which is unethical. Option B will appeal the most to him as it will affect his future interests.
Hence, option B is the correct answer.
Instructions
Analyse the following caselet and answer the questions that follow:
Recently a private food testing agency reported the presence of a harmful chemical in Crunchy Chips, a product of a fast moving consumer goods giant. The report sparked a nationwide Outcry.
Question 7: Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among consumers. Rajan had the following options:
1. Apologizing publicly for this inconvenience and immediately withdrawing the products from all stores.
2. Communicate ‘the correct findings’ to the public.
3. Hire a reputed independent testing agency to verify the claims of the report.
4. Establish internal mechanisms to prevent repetition of such incidences in future.
5. Give higher incentives to distributors and retailers for selling the company brands.
Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan, starting from the immediate?
a)Â 3, 1, 5
b)Â 3, 2, 4
c)Â 1, 3, 5
d)Â 1, 2, 5
e)Â 5, 3, 2
7) Answer (B)
Solution:
Statement 1 would mean the acceptance of the allegation which will tarnish the company’s image.
Statement 5 would neither be effective in increasing sales nor be able to sway allegations.
The authenticity and accuracy of the report is not known. Hence, the statements 3,2, and 4 are the correct way to approach the crisis at hand.
Hence, option B is the correct answer.
Question 8:Â Mukesh Routray, a shopkeeper in a remote village was surprised to read in the newspaper, his only source of information, about harmful chemicals in Crunchy Chips. He had stocked a large quantity of Crunchy Chips for the forthcoming festive season. He also realized that people in his village are completely unaware of this controversy. He had the following options:
1. Sell the entire stock at a discount before the news spreads.
2. Destroy the entire stock and advise customers not to buy this product from other shops as well.
3. Donate the entire stock of Crunchy Chips to a local orphanage.
4. Inform customers about the controversy but understate its seriousness.
5. Ignore the news and sell the stock at the forthcoming festive season as planned.
6. Explore the veracity of the report and then take decision
If arranged from ethical to unethical which of the following is DEFINITELY the WRONG order?
a)Â 6, 5, 1
b)Â 6, 1, 4
c)Â 4, 5, 1
d)Â 2, 4, 3
e)Â 2, 4, 1
8) Answer (B)
Solution:
Mukesh has just read the news in the newspaper and he is not sure about its truthfulness. So, the most appropriate step for him would be to explore the reality behind the news. Therefore, 6 is an ethical option. Option 2 is ethical too. 1,3,5 are unethical options. Option 4 can be considered as unethical too but to a lesser degree than 1,3,5.
So 6,1,4 is definitely the wrong order because 1 is more unethical option than 4. Hence, option B is the correct answer.
Question 9:Â An independent and trustworthy confidante of Rajan Shekhawat, the CEO of the company, informed him that one of their main competitors had bribed the food testing agency to manipulate the report.
Which of the following actions will BEST help Crunchy Chips to bounce back?
a)Â Proclaim over the media that their product is completely safe.
b) Secretly hire a food testing agency to ascertain the quality of the competitor’s product.
c)Â Hire another food testing agency to test and communicate the outcome to the consumers.
d)Â File a defamation case against the competitor for their alleged involvement in the conspiracy
e)Â File a defamation case against the food testing agency.
9) Answer (C)
Solution:
Proclaiming something without any evidence is futile. Option AÂ is wrong.
Without being sure of the involvement of competitors in any conspiracy, blaming is not correct. Options D and E are incorrect.
Option B would not help Shekhawat prove that his product is healthy which is the main allegation.
Option C is the best alternative for Shekhawat. He can prove both that his product is healthy and the allegations are false.
Hence, option C is the correct answer.
Instructions
Answer questions on the basis of information given in the following case.
MBA entrance examination comprises two types of problems: formula – based problems and application – based problem. From the analysis of past data, Interesting School of Management (ISM) observes that students good at solving application – based problems are entrepreneurial in nature. Coaching institutes for MBA entrance exams train them to spot formula – based problems and answer them correctly, so as to obtain the required overall cut – off percentile. Thus students, in general, shy away from application – based problem and even those with entrepreneurial mind – set target formula – based problems.
Half of a mark is deducted for every wrong answer.
Question 10:Â ISM wants more students with entrepreneurial mind – set in the next batch. To achieve this, ISM is considering following proposals:
I. Preparing a question paper of two parts, Parts A and Part B of duration of one hour each. Part A and Part B would consist of formula – based problems and application – based problems, respectively. After taking away Part A, Part B would be distributed. The qualifying cut – off percentile would be calculated on the combined scores of two parts.
II. Preparing a question paper comprising Part A and Part B. While Part A would comprise formula – based problems, Part B would comprise application – based problems, each having a separate qualifying cut – off percentile.
III. Assigning one mark for formula – based problems and two marks for application based problems as an incentive for attempting application – based problems.
IV. Allotting one mark for formula – based problems and three marks for application – based problem, without mentioning this is the question paper.
Which of the following proposal (or combination of proposals) is likely to identify students with best entrepreneurial mind – set?
a)Â II
b)Â I & II
c)Â I & III
d)Â II & III
e)Â II & IV
10) Answer (D)
Solution:
I doesn’t help because we cannot calculate the sectional cutoff and cannot identify the students with the best entrepreneurial mindset. II helps calculate sectional cutoffs and further helps identify the required students. III encourages students to attempt application-based questions as they carry high weightage. IV doesn’t help because if students don’t know, they start solving formulae-based questions as usual.
The answer is option D.
Question 11:Â ISM conducts a common entrance examination every year. This year, the question paper would comprise 60 questions with an equal mix of formula – based problems and application – based problems. All questions would carry equal marks. Balaji is appearing for the examination. Before, appearing for the examination he gets the following information from coaching institutes:
I. Application – oriented problems take more time to solve in an examination hall.
II. Chances of silly mistakes would be low in application – based problems.
III. ISM would assist the students with bank loans to start a new venture.
IV. Options are generally con fusing for formula – based problems.
V.‘Practice makes a man perfect’ can apply only to formula – based problems.
VI. Students get very good campus jobs.
Based on above information, which of the following options would help him to be better
prepared for the examination?
a)Â I ⅈ
b)Â I, II & V
c)Â II, III & VI
d)Â IV, V & VI
e)Â I, II, IV & V
11) Answer (E)
Solution:
In this question, we should consider the points that help Balaji score better in the examination. Statements III and VI discuss the benefits of joining the college and don’t mention any point related to the exam, while statements I, II, IV and V would help in Balaji’s preparation.
The answer is option E.
Instructions
Read the following case and choose the best alternative.
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 organiza tion 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.
Question 12:Â In the wake of recent happenings, what decision is expected from CTM management? From the combinations given below, choose the best sequence of action.
I. Stop the current investigation against the contractors to ensure industrial peace; after all allegations were based on rumours.
II. Continue investigation to expo se 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)Â I, V
b)Â I, II
c)Â II, V
d)Â III, IV
e)Â III, V
12) Answer (D)
Solution:
The very first step will be to get in touch with the contract labourers to explain to them the current situation with the competitors and the contractors.
Also, to ease their current situation with the labourers, they should immediately take some action against the security guards behind the firing. This will help boost their confidence in the CTM.
Thus, the correct option is D.
Question 13:Â In the current context, which among the following represent the most suitable reaction from CMMS leadership?
a)Â Distance CMMS from the episode and explain that CMMS is not involved in the fiasco through a press conference.
b)Â Offer membership to contract labourers, which would put the contract worker at par with the regular workers in CMMS.
c)Â Do not offer membership to contract labourers, but represent their interests during negotitation in order to prevent the formation of another union in CTM.
d)Â Start another union exclusively for contract labourers of CTM.
e)Â Adopt a neutral stand in public, and pass on information related to problem creators to the CTM management.
13) Answer (C)
Solution:
For any organisation with regular employees, it is not feasible, professional, and fair to offer memberships to contractual workers succumbing to their pressure. But in the case of an already escalated situation in CTM with the contractual workers, they have to woo them by representing their interests in order to halt any advent of a new union.
Thus, the correct option is C.
Question 14:Â Out of the options given below, which one would be the best policy decision by government at the national level?
a)Â Asking CM management to pay same wages to both regular and contract workers.
b)Â Income tax raids in offices of contractors under investigation.
c)Â Setting up a new labour welfare office within CM premises.
d)Â Setting up a new committee to make recommendations for changes in labour legislations with an objective to reduce exploitation of contract labourers.
e)Â Use entire government machinery to support CTM, which has an impeccable track record.
14) Answer (D)
Solution:
Since if situations like this become prevalent in the other parts of the country, then it will dissuade the companies from investing; hence, the government have to intervene by setting up new committees to reduce such events in the future.
Also, it will help protect the rights of the contractual labours.
Thus, the correct option is D.
Question 15:Â 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.
a)Â Contract labourers who were allegedly beaten by the security guard of the company.
b)Â District administration that is concerned about the spread of violence.
c)Â CMMS that prefers an immediate settlement of the issue.
d)Â Customers who are concerned about prices and regular supplies.
e)Â Contract labourers who are demanding job security and same wages as regular employees.
15) Answer (E)
Solution:
It will be very prudent for the CTM management to make the contract labourers their immediate priority as it can stop the escalation of a very serious and self-sabotaging issue in its tracks. As it was only one contract labour who was beaten up by the security, the issue is still in a very early stage.
Thus, the correct option is E.
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