Thursday, 26 December 2013


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 see:Answer key     
Questions 1 to 4: Read the following situations and
choose the best possible alternative.
1. Seema was a finance manager in an MNC and felt that gender discrimination at the workplace hampered her career growth. Frustrated, she quit the job and started a company. While starting her company, Seema decided that she would haveequal proportion of males and females. Over the next six years, Seema emerged as a very successful entrepreneur and expanded her business to eight locations in the country. However, Seema recently started facing an ethical dilemma because she realized that female employees were not willing to travel across cities and work late hours, as the work required them to do. Male employees did not hesitate undertaking
such work. Seema started to feel the pressure of reducing the proportion of female employees. On
the other hand, she is aware that equal representation was one of the strongest reasons
for her to have founded the company. What should she do as a conscientious female entrepreneur?

A.See if unwilling female employees could be given assignments which do not require travel and involve less overtime.
B.Reduce the number of female employees, as it is a business requirement. She should not let anything affect her business.
C. Let the status quo continue.
D.Henceforth hire only male employees.
E.She should close the business.

2. You, a recruitment manager, are interviewing Mayank, a hard- working young man, who has problems in speaking fluent English. He has studied in vernacular medium schools and colleges. Amongst the following options, what would you choose to do, if your company has vacancies?
A. I would hire him at all costs.
B. I would hire him for the job he is good at, and
provide training in other areas.
C. I would hire him for production or finance job
but not for marketing job, which requires good
communication skills.
D. I would ask him to improve his communication
skills and come back again.
E. I would not hire him as he might be a burden
on organisation because of his poor
communication skills.

3. The city of Nagar has a population of 10 million,
2 millions amongst whom are rich, 3 million poor and 5 million belong to the middle class.
Saundarya Cosmetics manufactured and sold beauty product to the rich class at a premium
price. Its products were very popular with customers. Many people from the middle and poor
segments of the population aspired to buy these products but could not afford because of the high prices. Of late, sales growth has been stagnating in the rich segment. Which of the following is the best option for Saundarya Cosmetics to maximize long-term profits?

A.Sell the same products at lower prices to middle and poor classes.

B.Sell similar products, of different quality standards with different brand names, to middle classes and poor classes.

C.Sell its products under different brand names to middle and poor classes.

D.Continue to target rich only and hope that
today’s middle class would be tomorrow’s rich

E.Target middle class as it is the largest segment
and forget about the rich.

4. A database software manufacturing company found out that a product it has launched recently
had a few bugs. The product has already been bought by more than a million customers. The
company realized that bugs could cost its customers significantly. However, if it informs the
customers about the bug, it feared losing credibility. What would be the most ethical option
for the company?

A.Apologize and fix up the bug for all customers even if it has to incur losses.
B.Do not tell customers about bugs and remove only when customers face problems, even if it
means losses for the customers.
C.Keep silent and do nothing.
D.Keep silent but introduce and improved product
that is bug-free at the earliest.
E.Take the product off the mark and apologize to

 see:Answer key     
Read the following caselet and choose the best
alternative (Question 5 to 10):
Mr. Rajiv Singhal, Chairman of the Board of Directors of Loha India Ltd., (a steel manufacturing company) had just been visited by several other directors of the company. The directors were upset with recent actions of the company president, Mr. Ganesh Thakur. They demanded
that the board consider firing the president. Mr. Thakur, recently appointed as president, had undertaken to solve some of the management-employees problems by dealing directly with the individuals, as often as possible. The company did not have a history of strikes or any other
form of collective action and was considered to have good work culture. However, Mr. Thakur felt that by dealing directly with individuals, he could portray the management’s concern for the employees. An important initiative of Mr. Thakur was to negotiate wages of the supervisors with
each supervisor. In these negotiation meetings, he would not involve anyone else, including the Personnel Department which reported to him, so as to take an unbiased decision.
After negotiation, a wage contract would be drawn up for each supervisor. This, he felt, would recognize and reward the better performers. Mr. Thakur successfully implemented
the process for most of the supervisors, except those working in night shift with that of supervisors of the day shift. For several days Ram Lal, a night shift supervisor, had
been trying to seek and appointment with Mr. Thakur about his wages. He was disgruntled, not only over his failure to see the president, but also over the lack of discussions about his wage contract prior to its being effected. As a family man with six dependents, he felt his
weekly wage should be higher than that granted to him. Last Thursday afternoon Ram Lal stopped by the president’s office and tried to see him. Mr.Thakur’s secretary refused his request on the grounds that Mr. Thakur was busy. Infuriated, Ram Lal stormed into the
president’s office and confronted the startled Mr. Thakur, with stood up and told Ram Lal to get out of his office and express his grievance through official channel. Ram Lal
took a swing at the president, who in turn punched Ram Lal on the jaw and knocked him unconscious.

5. The most important causal factor for this entire episode could be:

A.Trying to follow a divide-and-rule policy in his
dealings with the supervisors.
B. Inconsistent dealings of Mr. Thakur with
C.Paternalistic approach towards mature
individuals in the organisation.
D. Legalistic approach to employee problems.
E. Inadequate standards for measurement of
supervisors’ on-job performance.

6. The situation with Mr.Lal could have been avoided if Mr. Thakur had
1. Delegated the task of negotiation of wage contracts for night shift employees to Personnel
2. Created a process for supervisors working the night shift so that they could have and
opportunity to interact with him.
3. Created an open door policy that would have allowed employees to see him without any
4. Postponed the decision of wage revision for supervisors in the night shift for two months,
since supervisors were rotated on different shifts after every two months. The option that best arranges the above
managerial interventions in decreasing order of organisational impact is:
A. 4, 2, 3, 1 B. 4, 3, 2, 1
C. 4, 3, 1, 2 D. 4, 1, 2, 3
E. 2, 3, 1, 4

7. The most likely premise behind Mr. Thakur’s
initiative regarding individualised meetings with
the supervisors seems to be

A.Employee related policies should allow scope for bargaining by employees.

B. Involvement of company’s president in wage problems of employees will lead to a better goodwill towards the management among the workers.

C. Individual agreements with supervisors would allow the management to prevent any possiblecollective action by the supervisors.

D.Management will be able to force supervisors to accept lesser wages individually in this way.

E.He would be able to know who the trouble makers in the plant are by interacting with the

8. Out of the following, which one seems to be the most likely cause of Ram Lal’s grievance?

A.His disappointment with the management’s philosophy of having one to one interaction as
the supervisors were in a way being forced to accept the wage contracts.

B.His being in the night shift had worked to his disadvantage as he could not interact with the
management regarding his problem.
C.He was not allowed to meet chairman of the
board of directors of the company.

D.Employment in the night shift forced him to stay
away from his family during the day time and
therefore he could not interact with his family
members much.
E. All of these.

9. Apart from the supervisors working the night shift, executives of which department will have most
justified reasons to be disgruntled with Mr. Thakur’s initiative?
1. Production department - for not being consulted
regarding the behaviour of the supervisors on
the shop floor.

2. Finance department - for not taken into
confidence regarding the financial
consequences of the wage contracts.

3. Marketing department - for not being consulted
on the likely impact of the wage contracts on
the image of the company.

4. Quality control - for not being able to give inputs
to Mr. Thakur on how to improve quality of steel
making process.

5. Personnel department - for it was their work to oversee wage policies for employees and they had been ignored by Mr. Thakur.
A. 1 + 2 + 3 B. 1 + 4 + 5
C. 1 + 2 + 5 D. 1 + 3 + 4
E. 3 + 4 + 5

10. Which of the following managerial attributes does
Mr. Thakur seem to lack the most?
A. Emotional instability under pressure.
B. Proactive problem solving.
C. Ethical behaviour.
D. Emotional stability under pressure.
E. Independent decision making.


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