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Decision Making Test - 1

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Decision Making Test - 1
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  • Question 1
    4 / -1

    You are a teacher in a University and are setting a question paper on a particular subject. One of your colleagues, whose son is preparing for the examination on that subject, comes to you and informs you that it is his son's last chance to pass that examination and whether you could help him by indicating what questions are going to be in the examination. In the past, your colleague had helped you in another matter. Your colleague informs you that his son will suffer from depression if he fails in this examination. In such circumstances, what would you do?

    Solution

    This is a case of an ethical dilemma. A person who has helped you before is requesting a favour that is unethical. 

    Option a is not correct as it is clearly an unethical step despite the help you received from your colleague as it is a clear violation of the policies of the University. 

    Option b appears correct and is a close second among the given options. Not acceding to your colleague’s request if the correct step. 

    Option c is a better answer. The colleague is a friend of yours who has helped you in need. As a teacher in a University, you are expected to uphold the values and the policies of the University. Instead of refusing any help altogether, explaining to your colleague that as much as you would have liked to help, the rules of the University do not allow you to do as the reason why you cannot help is the appropriate step to be taken in such a situation.

    Option d is a slightly extreme step to be taken for someone who has been your colleague and one who has helped you in need. Instead, explaining the issues and the violations will be a better step.

    Option e is not correct as the person concerned is your colleague and he would expect an action from you instead of being ignored

  • Question 2
    4 / -1

    Sonagarh, a city in northern India, has just been hit by a flood. Thousands of people have lost their lives in the flood. To control the damage, the Government has appointed you to hire boats at short notice to be used for providing flood assistance and for rescue operations. You contact a few government approved boat agencies and request for a price. On seeing the price mentioned by the boat agencies, you found that the lowest price was approximately three times more than the approved rate of the Government. What would you do in this scenario?

    Solution

    The objective here is to acquire boats given there has been a natural disaster and you have very little time to get this done.


    Options a, c, d, e are not appropriate courses of action given the situation as all of these require time and you do not have sufficient time as it is needed for flood relief. In any situation, human life should be given the highest priority and hence the best option here is to accept the lowest price and initiate the operations.

  • Question 3
    4 / -1

    Directions For Questions

    Adarsh is working at Nest India Foods Private Limited(NIFPL). He was recently promoted to a senior Marketing role by his firm. NIFPL has been around for more than 10 years now, and is used by millions of Indians in their daily diet - Pulses, Wheat, Basmati Rice among the most used. All the items produced by NIFPL have been approved by the Food and Drug Administration. 

    NIFPL is planning to introduce a new Protein supplement to the market - Market Research has shown that a large number of people suffer from protein deficiency and are constantly purchasing supplements. NIFPL believes that by launching a supplement, they can increase their profits by over 75 Crores in the next fiscal year. The marketing team at NIFPL have gathered today to discuss the new product and plan the marketing strategy to launch "Protein supplement". 

    After the discussion, the marketing team comes with a comprehensive three month plan - The marketing strategy will involve a sticker on the product touting the health benefits of the supplement and NIFPL's relation to it. Everyone at the meeting appears to be impressed, especially since NIFPL's production line has plenty of spare capacity. Indeed, most of the products the firm produces are in the mature phase of their life cycle and the NIFPL is continuously exploring new sources of growth.

    At a dinner gathering with his friends, Adarsh asks his friends about consumption of protein supplements by them - almost 30% of them say they use some form of protein supplement. Adarsh is convinced that the new product by NIFPL will be a huge success. 

    NIFPL launches the protein supplement product and it turns out to be a huge success. Over the next six months revenues are on track to meet the expectations. At around this time, Adarsh, while browsing the web comes across several, yet unpublished, studies linking protein supplement to reduction in body immunity. What is more startling is that, the new protein supplement product was used in many of the trials carried out. Adarsh now begins to doubt the positioning of the product. He is also aware that if he has access to these studies, the Food and Drug Administration will almost certainly have access to them. 


    ...view full instructions

    What should be the immediate course of action that Adarsh should take?

    Solution

    Option a: Keeping quiet about it is not a good decision. The company may suffer a lawsuit and huge losses if the findings are correct. 

    Option b: Taking the product off the market based on an unpublished report is a slightly extreme reaction. 

    Option c is correct. It is important to discuss this with the larger team. Then, try and understand the research methodology used to check if there are any flaws before taking the final call.

    Option d: To switch a job is also not the right thing to do given his senior position. Moreover, it suggests he is not doing anything about a potential problem and running away from it.

    Option e is extreme action on an unpublished report from a responsible senior manager. This action does not make any sense given the situation as it does not solve the problem in anyway.

  • Question 4
    4 / -1

    Directions For Questions

    Adarsh is working at Nest India Foods Private Limited(NIFPL). He was recently promoted to a senior Marketing role by his firm. NIFPL has been around for more than 10 years now, and is used by millions of Indians in their daily diet - Pulses, Wheat, Basmati Rice among the most used. All the items produced by NIFPL have been approved by the Food and Drug Administration. 

    NIFPL is planning to introduce a new Protein supplement to the market - Market Research has shown that a large number of people suffer from protein deficiency and are constantly purchasing supplements. NIFPL believes that by launching a supplement, they can increase their profits by over 75 Crores in the next fiscal year. The marketing team at NIFPL have gathered today to discuss the new product and plan the marketing strategy to launch "Protein supplement". 

    After the discussion, the marketing team comes with a comprehensive three month plan - The marketing strategy will involve a sticker on the product touting the health benefits of the supplement and NIFPL's relation to it. Everyone at the meeting appears to be impressed, especially since NIFPL's production line has plenty of spare capacity. Indeed, most of the products the firm produces are in the mature phase of their life cycle and the NIFPL is continuously exploring new sources of growth.

    At a dinner gathering with his friends, Adarsh asks his friends about consumption of protein supplements by them - almost 30% of them say they use some form of protein supplement. Adarsh is convinced that the new product by NIFPL will be a huge success. 

    NIFPL launches the protein supplement product and it turns out to be a huge success. Over the next six months revenues are on track to meet the expectations. At around this time, Adarsh, while browsing the web comes across several, yet unpublished, studies linking protein supplement to reduction in body immunity. What is more startling is that, the new protein supplement product was used in many of the trials carried out. Adarsh now begins to doubt the positioning of the product. He is also aware that if he has access to these studies, the Food and Drug Administration will almost certainly have access to them. 


    ...view full instructions

    If NIFPL Senior Management becomes aware of these issues, what should they do?

    Solution

    It is important for management to understand how the product was given a go ahead internally - so (a) is correct.

    It is also important to speak to the research team that carried out the studies and get them to meet the protein supplement team. so (b) is also correct. 

    c - would mean doing nothing, which is generally not good, and d - is a very extreme option.

  • Question 5
    4 / -1

    Directions For Questions

    Adarsh is working at Nest India Foods Private Limited(NIFPL). He was recently promoted to a senior Marketing role by his firm. NIFPL has been around for more than 10 years now, and is used by millions of Indians in their daily diet - Pulses, Wheat, Basmati Rice among the most used. All the items produced by NIFPL have been approved by the Food and Drug Administration. 

    NIFPL is planning to introduce a new Protein supplement to the market - Market Research has shown that a large number of people suffer from protein deficiency and are constantly purchasing supplements. NIFPL believes that by launching a supplement, they can increase their profits by over 75 Crores in the next fiscal year. The marketing team at NIFPL have gathered today to discuss the new product and plan the marketing strategy to launch "Protein supplement". 

    After the discussion, the marketing team comes with a comprehensive three month plan - The marketing strategy will involve a sticker on the product touting the health benefits of the supplement and NIFPL's relation to it. Everyone at the meeting appears to be impressed, especially since NIFPL's production line has plenty of spare capacity. Indeed, most of the products the firm produces are in the mature phase of their life cycle and the NIFPL is continuously exploring new sources of growth.

    At a dinner gathering with his friends, Adarsh asks his friends about consumption of protein supplements by them - almost 30% of them say they use some form of protein supplement. Adarsh is convinced that the new product by NIFPL will be a huge success. 

    NIFPL launches the protein supplement product and it turns out to be a huge success. Over the next six months revenues are on track to meet the expectations. At around this time, Adarsh, while browsing the web comes across several, yet unpublished, studies linking protein supplement to reduction in body immunity. What is more startling is that, the new protein supplement product was used in many of the trials carried out. Adarsh now begins to doubt the positioning of the product. He is also aware that if he has access to these studies, the Food and Drug Administration will almost certainly have access to them. 


    ...view full instructions

    Adarsh decides to meet the research team that has carried out the trials. In this meeting he should:

    Solution

    The meeting should help Adarsh and NIFPL understand the research of the team that carried out the trials. (a) Intimidating them would be wrong, and asking them to reverse their findings would not be ethical. Asking them to re-evaluate findings just because it is a vital product is also unfair. (c) is correct. (d) is unnecessary and uncalled for.

  • Question 6
    4 / -1

    There is a shortage of sugar in your District where you are the District Magistrate. The Government has ordered that only a maximum amount of 30 kg sugar is to be released for wedding celebrations. A son of your close friend is getting married and your friend requests you to release at least 50 kg sugar for his son's wedding. He expresses annoyance when you tell him about the Government's restrictions on this matter. He feels that since you are the District Magistrate you can release any amount. You do not want to spoil your friendship with him. In such circumstances, how would you deal with the situation?

    Solution

    Option a is unethical and should be avoided. As the District Magistrate, you are expected to abide by government rules.

    Option b is a close second as refusing the amount is the right action but a direct refusal is a little insensitive because he is your friend, and he deserves a little more than a direct refusal. 

    Option c is a better answer compared to ‘b’. As the issue revolves around a friend, you should have a word with your friend by letting him know why you would not be able to provide the extra amount by showing him the rules you need to follow as a Government employee. This might help convince your friend on why you are unable to help him

    Option d is showing an indifferent attitude towards your friend. As a friend, he would expect that you solve the problem for him directly than asking him to contact someone else. 

    Option e is not correct as the person concerned is your close friend and he would expect an action from you instead of being ignored

  • Question 7
    4 / -1

    Directions For Questions

    Marathe is a vice President in a construction equipment company in the city of Mumbai. One day, his subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is over-bearing and is generally a bad influence on the team."

    Marathe called upon Gore, another project manager, and sought further information on Kale. Gore recalled that colleague, Lakhote (who was also Kale's former boss) had made a few remarks on his appraisal report about Kale being not fit for further promotion as he was emotionally unstable to work in groups though he had seven years of work experience. Lakhote had described Kale as too authoritative to work under anyone. Lakhote had further told Gore that Kale had an ailing wife, and an old mother, who does not want to stay with his wife

    ...view full instructions


    Consider the following solutions to the problem mentioned above:

    1. Marathe should transfer Kale to Chennai office

    2. Marathe should try and verify the facts from other sources as well

    3. Kale should be sacked

    4. Kale should be demoted

    5. Marathe should suggest Kale to visit a family counselor

    Which of the following would be the most appropriate sequence of decisions in terms of immediacy: starting from immediate to a longer term solution.

    Solution

    Actions 3 & 4 are extreme steps and should be avoided.

    Before taking any further decision, Marathe should try and verify the facts from other sources to ensure that the correct decision is based on more verifiable information rather than on the opinion of the two employees.

    Then, Marathe should transfer Kale to Chennai office to check the efficiency of Kale when working alone as a researcher.

    If the employee is having any personal problems, then it will hamper the productivity of an employee. Hence, for a long term solution, Marathe should suggest Kale to visit a family counselor. Action 1 comes before action 5 as professional reasons should be given priority and if it makes business sense for the company to allow him to work alone, then that action should be taken purely from a business standpoint. The personal suggestion is a way to counsel Kale in the long run. 

  • Question 8
    4 / -1

    Directions For Questions

    Marathe is a vice President in a construction equipment company in the city of Mumbai. One day, his subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is over-bearing and is generally a bad influence on the team."

    Marathe called upon Gore, another project manager, and sought further information on Kale. Gore recalled that colleague, Lakhote (who was also Kale's former boss) had made a few remarks on his appraisal report about Kale being not fit for further promotion as he was emotionally unstable to work in groups though he had seven years of work experience. Lakhote had described Kale as too authoritative to work under anyone. Lakhote had further told Gore that Kale had an ailing wife, and an old mother, who does not want to stay with his wife

    ...view full instructions

    Marathe sought an appointment with Lakhote to find out ways to help Kale. Lakhote is of the opinion that the company's responsibility is restricted to the workplace and it should not try to address the personal issues of the employees. If Marathe has to agree to Lakhote's opinion, which of the solutions presented in the previous question would be weakened:

    Solution

    Statement 5 tries to address the personal issues of the employees by asking Lakhote to visit a family counselor. Hence, this statement would be weakened if Lakhote’s opinion of a workplace not trying to address an employee’s personal issues is considered.

  • Question 9
    4 / -1

    Directions For Questions

    Marathe is a vice President in a construction equipment company in the city of Mumbai. One day, his subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is over-bearing and is generally a bad influence on the team."

    Marathe called upon Gore, another project manager, and sought further information on Kale. Gore recalled that colleague, Lakhote (who was also Kale's former boss) had made a few remarks on his appraisal report about Kale being not fit for further promotion as he was emotionally unstable to work in groups though he had seven years of work experience. Lakhote had described Kale as too authoritative to work under anyone. Lakhote had further told Gore that Kale had an ailing wife, and an old mother, who does not want to stay with his wife

    ...view full instructions

    Which of the following statements, if true would weaken the decision to sack Kale the most?

    Solution

    It is given in the passage that Kale is working in the organization for more than 7 years. According to the statement 1, Kale’s problems will wither away after 10 years of experience. Hence, this statement would weaken the decision to sack Kale

  • Question 10
    4 / -1

    You are involved in setting up a water supply project in a remote area. Full recovery of cost is impossible in any case. The income levels in the area are low and 25% population is below poverty line (BPL). When a decision has to be taken on pricing you would..

    Solution

    There are two issues to note here. The project cannot cover the entire cost of set-up and that there are there is group of people who are below the poverty line. Both these aspects need to be considered while coming up with the best course of action on pricing. 

    Option a is not financially feasible as it would mean huge losses.

    Option b is possibly also not financially feasible and it does not solve the issue of the BPL group in anyway as they might not be able to afford this one-time fee that is charged for everyone.

    Option c will not be fair to the non-BPL families. Although the non-BPL families not below poverty line, it is clearly stated that the income of the entire area is quite low. Moreover, the non-BPL families will all be paying the same price irrespective of each family’s usage. 

    Option d is the best choice as it tries to address the issue of being fair based on usage while also using differential pricing to accommodate the income constraints of the people below the poverty line.

    Option e is not feasible for reasons mentioned in b & c.

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