XAT 2017 — Decision Making Question 3
Analyse the following caselet and answer the question that follows:
Vimla is the domestic help for Shreya and her neighbour Padma; both live in a posh gated community. Vimla not only cleans the house, but also cooks for both the families. Shreya treasures Vimla ever since she joined her family four years ago. Vimla joined Padma’s household this year.
Analyse the following caselet and answer the question that follows:
Genius Consulting is a boutique consulting firm started by Shirish, Balram, Rahman and Xavier, four friends from a premier business school. They committed themselves to abide by two principles: a) not to indulge in anything unethical and b) share earnings equally.
Genius Consulting could not get a significant project till the following year, when they managed a big one after Rahman’s father referred their firm to his top management. Convinced of the team’s talent following an impressive presentation, the top management awarded them the project even though six other referred teams made presentations.
The day following the presentations, they met to decide the way forward for the organization. Which of the following choices would be the most appropriate for Genius Consulting?
Answer & solution
- A
As this project violates both their principles, Genius consulting should not take up the project.
- B
Due to the violation of the first principle Genius consulting should not take up this project.
They should take up the project. Further, since Rahman had agreed to equal sharing, he is not entitled to finder’s fee.
- D
They should take up the project and as the referral helped them survive, Rahman should be paid finder’s fee.
- E
They should take up the project. But, in order not to violate the principles, Rahman can be paid finder’s fee this year and an equal amount be deducted from his compensation the next year.
Since company is formed with a motto of ethics and equal compensation, it should not be disturbed. Compensation, should not change based on who gets the business because tomorrow someone else might get the business or getting business may be a role assigned to one member, while others play equally important but different role. It is not an unethical situation because the project was won on the basis of capability and not because of favour from Rahman‘s
father.
Hence, the correct answer is option 3.