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XAT Decision Making Practice Series – #3

XAT Decision Making Practice Series – #3

Case: 
Satyender heads a branch of a Micro-Finance company. The company provides small-size loans catering to rural households. As the head of the branch, he supervises three collection officers – Palani, Sayed, and Godwin. Palani was recently transferred by the company from another branch.
Q1. Sayed feared Palani’s transfer may pull down the performance of the branch, as he felt Palani was transferred due to his poor performance in the previous branch. Which of the following information will most likely assuage Sayed’s fear?
(A) In the past 12 years as the head of branch, Satyender has exceeded targets every time.
(B) Palani has been a top performer in the organization; his performance has deteriorated only in the last three years.
(C) The branch’s performance has been good for the past 10 years; Sayed has joined the organization 3 years back.
(D) When Sayed joined as a fresher in this branch, others in the branch had feared that he might bring down the performance of the branch.
(E) While calculating the branch’s performance, the branch head has the choice to exclude new joinee’s performance.
Q2. Three months later, Palani submitted local travel bills to Satyender for reimbursement. Satyender realized that the bill amount was 30% higher than expected.
Which of the following options, if true, will enable Satyender to take a decision that shall set a precedent, which is least likely to be misused in the future?

(A) Palani being new to the area uses autorickshaws which are more expensive than personal motorcycles used by other collection officers.
(B) Unlike his colleagues, Palani’s house has very poor public transport connectivity.
(C) Unlike his colleagues, Palani’s sales territory has a powerful competitor.
(D) Unlike his colleagues, Palani’s customers can meet him only during weekends.
(E) Unlike his colleagues, Palani has to visit customers repeatedly as they require additional persuasion.
Q3. Satyender is allocating territories to his subordinates for the coming financial year. So far, Palani’s performance has been poor and this allocation will decide his future in the organization. Which of the following information will be the least useful to Satyender in taking a fair allocation decision?
(A) Sayed’s territory has shown consistently good performance in the past three years.
(B) Sayed’s territory faces stiff competition from a well-known brand.
(C) A new territory that faces competition from two relatively unknown brands.
(D) Godwin’s territory has shown consistent results in the past three years.
(E) Godwin’s territory performance has been flat for the past two years.
Post your answers in the comments below!

5 Answers
Om Prakash, MBA Aspirant answered 7 months ago

1.D
2.A
3.C

Chirag Shukla, MBA Aspirant

replied 7 months ago

Hi Om Prakash.
Your last two answers are correct, but your first answer is wrong.

At first glance, option D seems the correct option because it is assumed that just because Sayed proved everyone wrong about his perceived lack of performance, Palani will do the same. However, this is just an assumption without reasonable justification. Palani could underperform at this branch and prove everyone right.

Only option (E) is logically consistent since it addresses the issue of the branch performance being brought down due to Palani.

Hope this helps!

Om Prakash, MBA Aspirant

replied 7 months ago

Thanks

Chirag Shukla, MBA Aspirant
answered 7 months ago

Answers –

  1. E
  2. A
  3. C
Rituraj Paul, MBA Aspirant

replied 7 months ago

First answer will be A, not E. According to XAT official key

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