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XAT Decision Making Practice Series – #2

XAT Decision Making Practice Series – #2

Answer the following DM questions (XAT 2014, XAT 2016)

Case 1Consider merit pay for teachers. Schools face constant pressure to change their management approaches to improve performance, which is usually assessed by standardized reading. math and science scores. In most schools teachers’ pay is determined by seniority, years of total teaching experience, and credentials. Pay is rarely based on performance, which is contrary to the belief among parents and the private sector. Parents and business leaders lament that there are no carrots/sticks used to motivate teachers. Consequently, there has been a greater push to implement some form of merit pay to improve the motivation.

Which of the following statements will disprove the claim of the parents and business leaders?
A. A recent study suggested that teachers are self- motivated.
B. Teachers are largely motivated, by financial incentives; so pay for performance will induce greater and more effective effort.
C. Learning cannot be measured reliably and accurately by a test given once a year.
D. Teaching is a solo-activity, there is a little interdependence with other co-curricular and extracurricular activities in the school.
F. To err is human. And hence stick should be used to reduce errors.

Case 2 – Kamal Chinappa, Vimal Rao, Ganesh Krishnan and Dinesh Kumar own a saloon each on Barbil street. They are the only hairdressers on their street. Each of them offered 3 services – haircut, shaving and hair-dye. One evening, all of them met in a nearby tea stall and agreed to charge Rs.100 for any of the three services on weekdays, and Rs. 115 on weekends and holidays. All verbally decided to implement the agreement. 
Q1. The following day, Kamal, the most competent hairdresser on the street, was contemplating charging people higher than the agreed price for his services. 

Which of the following will allow him to charge more with minimal violation of the agreement?
A) He should introduce a new and specialised service at Rs. 130
B) He should open another shop on the same street and charge Rs. 150
C) He should charge Rs. 130 for those wanting to jump the queue.
D) He should charge Rs. 115 for a service to a customer and give the next service for free.
E) He should open his shop two hours before others and close it two hours after.

Q2. Vimal relies heavily on a bunch of loyal customers. He is concerned about retaining them. Which of the following options should he choose if he does not want to violate the agreement?
A) He should charge differential rates for loyal customers.
B) He should charge the loyal customers lower.
C) He should make every third visit free for his loyal customers.
D) He should charge all on the agreed upon price.
E) He should allow his loyal customers to jump the queue.

3 Answers
Om Prakash, MBA Aspirant answered 6 months ago

Case 2

I didn't see this question before.


Chirag Shukla, MBA Aspirant
answered 6 months ago

The correct answer for these 3 questions is – 

Eashna Jain, MBA Aspirant

replied 6 months ago

how E FOR 2(2)?

Your Answers