XAT 2018 — Decision Making Question 5
Answer the following question based on the information given below.
Lal & Sons, a family business, comprises three different companies in three different industries. Sudarshan Lal was heading this entire business from the inception. Two years ago, he hired three managers, one for each company and Chhaganlal Jha as Chief Executive Officer (CEO) to look after the entire business. These three managers are reporting to the CEO. However, Sudarshan Lal and his family still own the entire business, though they are not involved in day to day operations. Two years after the handing over, Sudarshan was concerned that none of the companies, except one, is profitable.
Some of the senior employees who left Lal & Sons in recent past have complained to Sudarshan that the long cherished values of the organization such as respect for elders, job security etc. are being compromised. Which of the following options, if true, will indicate to Sudarshan that the employees are misleading him?
Answer & solution
- A
The replaced employees have been average performers for many years.
When senior employees were assigned to lead challenging but critical positions in the organization, they resigned.
- C
The senior employees were replaced by people below them and not from outside the organization.
- D
The replaced senior employees had only 4 more years of service and were not compensated for the pre-mature termination.
- E
The number of senior employees voluntarily leaving this organization is lower than the industry average.
[1] only serves to strengthen the senior employees’ allegations. Similarly, [3] and [4] reinforce the view that senior employees are not being respected. [5] is irrelevant to the situation as industry-wide attrition rate has no bearing on the situation at hand. [2], on the other hand, weakens the senior employees’ allegations that they were not treated with respect. If the company offers challenging but critical positions to senior employees, it can only be out of a sense of respect for the senior employees’ capabilities. Moreover, by offering such positions, there is no threat to their jobs as well. Thus, [2] indicates that the accusation of the senior employees is incorrect.
Hence, the correct answer is option 2.