Updated: Question in XAT 2012 Question Paper with Answers
August 13, 2012
Answer question nos. 24 – 25 on the basis of the information given in the following case.
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 organization’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.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?
- He is not interested in maintaining quality relationship with retailers.
- He may need to work harder to earn the highest salary.
- He considers the proposal as a serious threat to his favourable position in Saral Co.
- No clarity regarding the relative importance of the three parameters.
- He is not interested in collecting the information regarding competitors.