Comprehension
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 or ganization’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: 1
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?
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?
Show Hint
When incentives change, ask: \textit{Who benefits from the status quo?} Resistance typically comes from those whose current advantage is threatened by added performance dimensions or redistributed weights.
Updated On: Dec 6, 2025
- He considers the proposal as a serious threat to his favourable position in Saral Co.
- He is not interested in collecting the information regarding competitors.
- No clarity regarding the relative importance of the three parameters.
- He is not interested in maintaining quality relationship with retailers.
- He may need to work harder to earn the highest salary.
Show Solution
Verified By Collegedunia
The Correct Option is
Solution and Explanation
Step 1: At Saral Co., salary is proportional to sales. Manohar is the highest earner for three years, so he already excels on the {sales} metric and benefits from the status quo.
Step 2: The GM’s proposal adds two additional determinants—{competitor information collection} and {quality of retailer relationships}. These create extra effort/metrics beyond sales, potentially diluting the weight of sales.
Step 3: Among the options, (E) captures the most direct self-interest for the top seller: with new parameters he must now invest effort in two additional areas to preserve his lead (or risk losing it). Options (A)–(D) speculate about fear, disinterest, or ambiguity; however, the {most likely} cause of strong opposition from the current top beneficiary is the increased effort required to keep earning the highest salary—hence (E).
Step 2: The GM’s proposal adds two additional determinants—{competitor information collection} and {quality of retailer relationships}. These create extra effort/metrics beyond sales, potentially diluting the weight of sales.
Step 3: Among the options, (E) captures the most direct self-interest for the top seller: with new parameters he must now invest effort in two additional areas to preserve his lead (or risk losing it). Options (A)–(D) speculate about fear, disinterest, or ambiguity; however, the {most likely} cause of strong opposition from the current top beneficiary is the increased effort required to keep earning the highest salary—hence (E).
Was this answer helpful?
0
0
Question: 2
The top management of Saral Co. refused to implement the proposal of the new GM from the beginning of next month. Which of the following could be the most justified reason for the management’s refusal?
The top management of Saral Co. refused to implement the proposal of the new GM from the beginning of next month. Which of the following could be the most justified reason for the management’s refusal?
Show Hint
Map answers to the \textit{stated norms} of the organization in the passage. If a firm emphasizes consensus, delays to allow deliberation are usually the most justified explanations.
Updated On: Dec 6, 2025
- To ensure that no manager will get credit for a major change soon after joining.
- To avoid attracting criticism for their failure to implement a similar scheme.
- His past experience is limited to seven north-eastern states only.
- The GM is new to the organization and he would require some time to implement the new plan.
- The top management would need time to deliberate and get consensus.
Show Solution
Verified By Collegedunia
The Correct Option is
Solution and Explanation
Step 1: The case explicitly states that Saral Co. has a history of {participative decision-making} where people discuss pros and cons openly and a {broad consensus} is reached before final decisions.
Step 2: Refusing immediate implementation next month best aligns with this established process: management needs time for deliberation, consultation, and consensus-building across stakeholders.
Step 3: Options (A)–(D) either assign ulterior motives or focus on the GM’s tenure/experience, which are less justified than adherence to the company’s standard governance. Therefore, (E) most directly reflects the organization’s decision-making culture and is the most justified reason.
Step 2: Refusing immediate implementation next month best aligns with this established process: management needs time for deliberation, consultation, and consensus-building across stakeholders.
Step 3: Options (A)–(D) either assign ulterior motives or focus on the GM’s tenure/experience, which are less justified than adherence to the company’s standard governance. Therefore, (E) most directly reflects the organization’s decision-making culture and is the most justified reason.
Was this answer helpful?
0
0
Top XAT Questions
- Ashok, a maths teacher in the school, asked his students to guess his date of birth by giving the following hints.
Hint 1: He was born in 1995
Hint 2: The sum of the products of his birth date multiplied by 24 and his birthday month multiplied by 60 is 1284.
Find the sum of Ashok’s birth date, birth month, and birth year. - Solve for the number of integral values of \(x: \frac{(x^2-15x+47)(x-13)}{(x-8)}<0\).
- In an examination, Akhil scored 11.11% less than the pass marks and Akshay scored 12.5% more than the pass marks. Find the percentage of pass marks if the sum of the scores of Akhil and Akshay is 25% more than the total marks.
- The ratio of paint and oil in Tank A is 3: 4, whereas in Tank B, the respective ratio is 4: 5 . Then, 96 liters of a mixture consisting of paint and oil in the ratio of 5: 1 is added to Tank A, such that the respective ratio in Tank A becomes exactly the reverse of that in Tank B. Find the amount (in liters) of the mixture from Tank B that is poured into Tank A such that the amount of paint and water in Tank A become equal.
- The points (–4, 3) and (–1, –4) are two end points of a diagonal of a parallelogram. If the other diagonal has the equation 7y + 3x + c = 0, then find the value of c.
View More Questions