Dicision Making Test

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Dicision Making Test - 13

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Question 1
4 / -1

Kings Distillery Ltd. was a leading manufacturer of alcohol related beverages in the late 1990s and early 2000s. Over the past few years, it has seen a 40% erosion in its business, yet its stock prices have gone by around 30% in the same time period. A lot of analysts are baffled as they believe that the stock should have gone down as the sales have gone down for the company.

Which one of the following options explains this apparent dichotomy in the behavior of the company stock?

A
The company has taken to brand promotion with a new zeal and build a new ad campaign.

B
The company has managed to survive all these years and stock markets appreciate the company's determination to go on.

C
The manufacturing facilities for the company are spread over acres of prime land now, and the value of this land bank is now many times over the sales of the company.

D
The company has decided to diversify into non-alcoholic products as well.

E
both options 1 and 4

Solution

In the given case, need to an answer option that explains the positive valuation of the company stock despite the drop in sales (and effectively the revenue). In the given case, option 3 provides the best explanation for the situation as it highlights how the company net valuation is still increasing despite a drop in sales for the company.
Question 2
4 / -1

Directions For Questions

The sales managers of Gluco-pharmaceuticals face a peculiar problem. In the past, they were tasked with handling the sales, marketing and branding portions of the business. The sales managers had no role in the day to day operations of the company and were not involved in the logistics and transportation side of the business. But in the recent times, the management of the company has changed and now the new management wishes to introduce new cost cutting measures. The sales team has also been asked to handle the logistics and transportation side of the business, which essentially means the delivery of goods (once produced in the factories) to various vendors. The sales managers see this as additional burden and feel that their on the job performance will be impacted by these measures. The management, on the other hand, believes that these measures would improve the overall profitability of the company, and they have linked the performance bonus of the sales team with their efforts on ground. This has created a lot of tensions in the sales team as they feel they are unnecessarily being placed under pressure and are being forced to take up additional responsibilities.

...view full instructions

In the given situation, what should the sales managers do?

A
It is their job to complete the tasks assigned and they should do as told.

B
They should go on a strike and make sure their demands are met.

C
They should continue to only perform their sales related tasks and not take up additional responsibilities.

D
They should continue with their work and in the meantime, ask the management to set-up a review board wherein they can share their increased challenges and prove their point.

E
They should resign and search for better jobs.

Solution

In the given case, essentially there are two points of view, and both sides believe that they are right to adopt their particular stand. In the given case, options 2 and 3 would be paths of conflict which might not necessarily resolve the dispute. Option 4 takes a measures approach wherein both sides can represent their points of view and still continue to function. This makes it the most appropriate course of action in the given case.
Question 3
4 / -1

Directions For Questions

The sales managers of Gluco-pharmaceuticals face a peculiar problem. In the past, they were tasked with handling the sales, marketing and branding portions of the business. The sales managers had no role in the day to day operations of the company and were not involved in the logistics and transportation side of the business. But in the recent times, the management of the company has changed and now the new management wishes to introduce new cost cutting measures. The sales team has also been asked to handle the logistics and transportation side of the business, which essentially means the delivery of goods (once produced in the factories) to various vendors. The sales managers see this as additional burden and feel that their on the job performance will be impacted by these measures. The management, on the other hand, believes that these measures would improve the overall profitability of the company, and they have linked the performance bonus of the sales team with their efforts on ground. This has created a lot of tensions in the sales team as they feel they are unnecessarily being placed under pressure and are being forced to take up additional responsibilities.

...view full instructions

The sales managers have to refused to take up their new responsibilities despite the repeated attempts of the management to make them understand their point of view. What should the management do in this case?

A
fire the sales team

B
hire a new sales team and then fire the existing sales team

C
cancel the performance incentives for this year

D
put the performance incentives on hold and ask the team to negotiate

E
fire the most vocal voice of the sales managers to set an example

Solution

In the given case, options 1, 2 and 5 will essentially escalate the situation and can in turn create a bigger mess for the company. Also, these might have a huge impact on the work of the company and might make it impossible for work to continue. Options 3 and 4 effectively adopt similar course of actions but the only difference is that option 4 has an additional clause that leaves the possibility of resolution open. Also, the company needs to take an action that makes it clear that it will not bow down to pressure, yet at the same time, you need to make sure that work does not suffer also. Keeping these considerations in mind, option 4 is the best resolution for the given situation.
Question 4
4 / -1

According to recent report, the majority of jobs in the government sector in India do not have strong accountability clauses. For majority of the posts, the seniority in rank determines the pay of an individual and not the work done by that person. This means that there is no reason for the person to perform to the best of his abilities as his growth is already guaranteed by the number of years he puts in the job.

Which one of the following statements will disprove the claim made in the argument above?

A
a recent report shows that 2 out 5 individuals in government sector may be self-motivated.

B
all government departments have a report system wherein the senior officials files reports on the performance of the junior officer. Though not linked to salaries, a bad report can mean a loss of promotion or demotion, effectively having an impact on seniority.

C
all government officials are extremely scared of being reported for misdemeanor by the press or by citizens, and it is out of this fear that they perform their jobs.

D
most government departments are run on the basis of sycophancy and pleasing your senior official, and those who do so are the ones who receive their promotions the quickest.

E
most government jobs are obtained by paying a bribe and thus most individuals are not motivated enough to perform in such a scenario.

Solution

The first thing that you need to do is to establish what needs to be done in the question: you need to prove that there is a link between the work done by a person and the salary he receives. How do we do this? We do this with the help of option 3, it simply means this: if the person performs, he gets a good report which in turn leads to his promotion which in turn leads to his seniority in rank and thus, the link between pay and performance in established.
Question 5
4 / -1

You are currently operating a project that has 6 teams in it. 3 out of those 6 teams are performing well and are working on schedule. The remaining 3 teams are not performing on time, and are in danger of impacting the overall project deadline. For the whole project to be completed on time, you need to make sure that all teams perform on time. Which, out of the following, should be taken up by you to make sure the project is completed on time?

A
re-arrange the teams so that the good workers are distributed.

B
re-arrange the team leaders so that the bad teams have good team leaders.

C
remove the non-performing teams from the project.

D
ask the teams to work over time to complete the work.

E
assess individual members and processes of each team to establish the weak links.

Solution

In the given case, options 1 and 2 do not make sense as they might impact the overall project and might mean that even the good teams struggle to complete their work.

Option 3 is again not a solution as teams need to be made efficient, removing them does not solve the problem. Also, option 4 might mean that employees work over time but they still do not perform to their optimum. Option 5 is the most balanced option in the given case as it addresses the core problem in the given case.
Question 6
4 / -1

Directions For Questions

Mahesh Industries is currently undergoing a change of guard. The company has been in the machine screw manufacturing business for the last 20 years, and was run by Mahesh Singhania. Last year, Mahesh Singhania's son Suresh joined the company business after completing his education from the United States. The last one year has been the year of upheavals for the company and Suresh has brought in a quite a few radical changes in the family run business. For starters, he changed the existing management processes of the company and installed a new computerized ERP program that took care of all inventory, accounts and operation management. What this ERP system effectively did was to reduce the manpower by half required for the management of these processes. The next step he took was the modernization of the plant and this has also meant that the manpower requirement of the plant has gone down considerably, and overall productivity has increased. Despite these positive changes, there have been a host of issues that have come up in the last one year. The most significant of these has been that overall 30% of the employees of Mahesh Industries stand to lose their jobs because of these changes. Since majority of these have been associated with the company for a fairly substantial period of time, Mahesh Singhania has found it very tough to let go of these people. Also, there is tremendous employee unrest in the company, and in the last three weeks, the productivity of the refurbished plant has gone down by more 50% as employees are refusing to take orders from Suresh Singhania. Also, they want all the old employees of the company should be offered job protection and security.

...view full instructions

In the given situation, the following options exist for Mahesh Singhania:

I. He should ask his son to take a back seat for some time and handle the company affairs for some time himself.

II. He should remove his son from active management and roll back the changes.

III. He should provide the old employees the job security they ask for.

IV. He should stop the modernization of the plant.

How many of the above options should Mahesh Singhania exercise?

A
0

B
1

C
2

D
3

E
4

Solution

In the given case, Mahesh Singhania should exercise only one option, that is given by statement I. Options provided by statements II, III and IV do not resolve the matter at hand and are too lop-sided in nature to address the issue from a balanced perspective.
Question 7
4 / -1

Directions For Questions

Mahesh Industries is currently undergoing a change of guard. The company has been in the machine screw manufacturing business for the last 20 years, and was run by Mahesh Singhania. Last year, Mahesh Singhania's son Suresh joined the company business after completing his education from the United States. The last one year has been the year of upheavals for the company and Suresh has brought in a quite a few radical changes in the family run business. For starters, he changed the existing management processes of the company and installed a new computerized ERP program that took care of all inventory, accounts and operation management. What this ERP system effectively did was to reduce the manpower by half required for the management of these processes. The next step he took was the modernization of the plant and this has also meant that the manpower requirement of the plant has gone down considerably, and overall productivity has increased. Despite these positive changes, there have been a host of issues that have come up in the last one year. The most significant of these has been that overall 30% of the employees of Mahesh Industries stand to lose their jobs because of these changes. Since majority of these have been associated with the company for a fairly substantial period of time, Mahesh Singhania has found it very tough to let go of these people. Also, there is tremendous employee unrest in the company, and in the last three weeks, the productivity of the refurbished plant has gone down by more 50% as employees are refusing to take orders from Suresh Singhania. Also, they want all the old employees of the company should be offered job protection and security.

...view full instructions

In the given case, the Singhania's need to:

A
place the company profit above all else.

B
give primary importance to plant modernization.

C
portray themselves as strong individuals not willing to bow down to pressure.

D
be fair and strong at the same time

E
be cunning and clever.

Solution

In the given situation, the Singhania's need to be fair and strong at the same time. They can do so by making sure the concerns of their employees are met and there is no unrest in the company. Also, at the same time, they need to make sure that their modernization plans and their systematic improvements do not suffer. This makes option 4 the most suitable choice in the given case.
Question 8
4 / -1

Directions For Questions

Mahesh Industries is currently undergoing a change of guard. The company has been in the machine screw manufacturing business for the last 20 years, and was run by Mahesh Singhania. Last year, Mahesh Singhania's son Suresh joined the company business after completing his education from the United States. The last one year has been the year of upheavals for the company and Suresh has brought in a quite a few radical changes in the family run business. For starters, he changed the existing management processes of the company and installed a new computerized ERP program that took care of all inventory, accounts and operation management. What this ERP system effectively did was to reduce the manpower by half required for the management of these processes. The next step he took was the modernization of the plant and this has also meant that the manpower requirement of the plant has gone down considerably, and overall productivity has increased. Despite these positive changes, there have been a host of issues that have come up in the last one year. The most significant of these has been that overall 30% of the employees of Mahesh Industries stand to lose their jobs because of these changes. Since majority of these have been associated with the company for a fairly substantial period of time, Mahesh Singhania has found it very tough to let go of these people. Also, there is tremendous employee unrest in the company, and in the last three weeks, the productivity of the refurbished plant has gone down by more 50% as employees are refusing to take orders from Suresh Singhania. Also, they want all the old employees of the company should be offered job protection and security.

...view full instructions

One possible solution that can be adopted by the Singhania's is:

A
they can set up a new plant and ask the extra workforce to shift there.

B
they can raise the salaries of the people they wish to retain to make them happy and force the others out.

C
they can offer a voluntary retirement scheme with an attractive payout option that makes it easier for the employees to leave.

D
they can put a stop on the hiring process and ask the old employees to carry out extra work.

E
none of the above.

Solution

In the given case, we need to identify an option that is practical as well as ethical. Option 1 is not practical in nature, option 2 is unethical and option 4 does not seem to be logical (as hiring of employees is anyways not mentioned in the first place). Option 3 is the perfect way out as it solves the problem and at the same time, makes sure that all parties effectively get what they want.
Question 9
4 / -1

You are an office in the police force and are an acting DSP, Traffic Police, Chandigarh. Recently, you have been surrounded by controversies. It all started when you 'challan-ed' a High Court Judge. Three days after the challan, you were transferred from your post to another department. The local media has picked up on the news and is highlighting it significantly in the local newspapers. What should you do in the given situation?

A
You should lay low and join your new department

B
You should not join the new department and resign from your job.

C
You should call a press conference and provide your side of the story.

D
You should file a case in High Court against the erring Judge.

E
You should join the new department and at the same time, lodge a complaint with the department highlighting the injustice meted out to you.

Solution

In the given case, the matter definitely needs to be taken up but it needs to be taken up with the right authorities. In the given case, the press or the High Court is definitely not the right authority as the transfer is done by your department, they are the ones that need to be questioned. The only option which does that is option (5)
Question 10
4 / -1

In your housing society, some people of a certain community were celebrating their festival in a noisy manner. Some people of other communities objected to this style of celebrations and wanted the members of the particular community to tone down their celebrations. The community objected quoting that they never objected to the celebrations of others. This lead to a heated discussion between the two communities, and in the middle of this, someone threw some stones on the members of the particular community. The situation has grown very tense and physical violence including a riot can be expected in the given situation. You are observing this situation develop from your balcony. What should you do?

A
try to identify and catch the person who threw stone.

B
go down the scene and try to settle down the two parties.

C
contact the press immediately and try to get the incident covered.

D
contact the local law authorities immediately.

E
do not get involved in any way as you might be harmed.

Solution

In the given case, the first thing that needs to be done is that the safety of the residents has to be assured and for this, the local law authorities should be involved at the earliest. Considering that the situation is already delicate, the best way to deal with is to give the local police and authorities enough time to react to the situation, and thus option 4 is the best choice in the given case.

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Dicision Making Test - 13

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Dicision Making Test - 13

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SHARING IS CARING

Question 1

The company has taken to brand promotion with a new zeal and build a new ad campaign.

The company has managed to survive all these years and stock markets appreciate the company's determination to go on.

The manufacturing facilities for the company are spread over acres of prime land now, and the value of this land bank is now many times over the sales of the company.

The company has decided to diversify into non-alcoholic products as well.

both options 1 and 4

Solution

Question 2

It is their job to complete the tasks assigned and they should do as told.

They should go on a strike and make sure their demands are met.

They should continue to only perform their sales related tasks and not take up additional responsibilities.

They should continue with their work and in the meantime, ask the management to set-up a review board wherein they can share their increased challenges and prove their point.

They should resign and search for better jobs.

Solution

Question 3

fire the sales team

hire a new sales team and then fire the existing sales team

cancel the performance incentives for this year

put the performance incentives on hold and ask the team to negotiate

fire the most vocal voice of the sales managers to set an example

Solution

Question 4

a recent report shows that 2 out 5 individuals in government sector may be self-motivated.

all government departments have a report system wherein the senior officials files reports on the performance of the junior officer. Though not linked to salaries, a bad report can mean a loss of promotion or demotion, effectively having an impact on seniority.

all government officials are extremely scared of being reported for misdemeanor by the press or by citizens, and it is out of this fear that they perform their jobs.

most government departments are run on the basis of sycophancy and pleasing your senior official, and those who do so are the ones who receive their promotions the quickest.

most government jobs are obtained by paying a bribe and thus most individuals are not motivated enough to perform in such a scenario.

Solution

Question 5

re-arrange the teams so that the good workers are distributed.

re-arrange the team leaders so that the bad teams have good team leaders.

remove the non-performing teams from the project.

ask the teams to work over time to complete the work.

assess individual members and processes of each team to establish the weak links.

Solution

Question 6

0

1

2

3

4

Solution

Question 7

place the company profit above all else.

give primary importance to plant modernization.

portray themselves as strong individuals not willing to bow down to pressure.

be fair and strong at the same time

be cunning and clever.

Solution

Question 8

they can set up a new plant and ask the extra workforce to shift there.

they can raise the salaries of the people they wish to retain to make them happy and force the others out.

they can offer a voluntary retirement scheme with an attractive payout option that makes it easier for the employees to leave.

they can put a stop on the hiring process and ask the old employees to carry out extra work.

none of the above.

Solution

Question 9

You should lay low and join your new department

You should not join the new department and resign from your job.

You should call a press conference and provide your side of the story.

You should file a case in High Court against the erring Judge.

You should join the new department and at the same time, lodge a complaint with the department highlighting the injustice meted out to you.

Solution

Question 10

try to identify and catch the person who threw stone.

go down the scene and try to settle down the two parties.

contact the press immediately and try to get the incident covered.

contact the local law authorities immediately.

do not get involved in any way as you might be harmed.

Solution

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