XAT 2019 — Decision Making Question 7
Read the following caselet and answer the questions that follow.
The Public Relations Department of an organization has spent only 4 crores of its allocated 16 crores on publicity. There are 2 months left in the financial year. Due to shortage of officers, the Assistant Director, Operations has been given an additional charge of publicity. Because of his other commitments, he is unable to find time to undertake tasks such as baseline study, ascertaining communication needs, testing proposed messages and media channels, deciding optimum periodicity, measuring impact, etc. He also argues spending the rest of the budget is unnecessary because their regular programs are already widely known. His boss, the Director, however, feels that only by utilizing the entire budget can a similar amount be demanded the next year. He also thinks that there is nothing like enough publicity.
Which of these is the best course of action for the department?
Answer & solution
- A
Surrender the budget right away so it can be utilized by other departments.
Hire a specialized external agency which will study the gaps and needs within a fortnight and follow it's recommendations.
- C
Request higher authorities to reallocate the remaining amount to other departments of the organization.
- D
Repeat the advertising done so far 3 times over and thus exhaust the entire amount.
- E
Rely on the operational experience of the Director and the Assistant Director and start spending the optimal amount right away.
The Assistant Director states that spending the budget is unnecessary because their regular programs are already widely known. However, the Director feels that only by utilizing the entire budget can a similar amount be demanded the next year. In this case, it would be best to come up with some data/analysis to determine the next course of action. Hiring an external agency to study the gaps and needs is a valid course of action. Retain [2]. [1] and [3] are contrary to the Director’s opinion. [4] may not be effective at all. It also makes little sense. [5] does not take into account that there is a conflict of opinion between the Assistant Director and the Director.
Hence, the correct answer is option 2.