List of top Decision Making Questions asked in XAT

Vivekananda Memorial Elocution Competition (VMEC) in Viswavijay Public School (VPS) has a history of forty years. Apart from the founder’s day and annual day celebrations, it is the most important event of the school. 
In recent times, due to the increased popularity of reality shows on television channels, and for various other reasons, the elocution competition lost its appeal. Interest of both students and parents has been eroding over a period of time. To ensure sufficient audience, Mr. Ivan, Head of English Department, introduced choral recitation for junior section as a part of elocution competition. Three classes, each consisting of forty students, get short-listed for the final performance of choral singing on the day of VMEC. Most of the parents and family members of these students attend the function to encourage them. This initiative increased the number of people attending the elocution competition.
Some teachers are unhappy with the emphasis given on the elocution competition, since they are expected to be present at the school on the day of competition, which normally happens on a weekend to accommodate the working parents. The teachers were not granted leave on the day of VMEC and they used to be unhappy regarding this aspect.

Dev Anand, CEO of a construction company, recently escaped a potentially fatal accident. Dev had failed to notice a red light while driving his car and attending to his phone calls. His well-wishers advised him to get a suitable replacement for the previous driver Ram Singh, who had resigned three months back. Ram Singh was not just a driver, but also a trusted lieutenant for Dev Anand for the last five years. Ram used to interact with other drivers, and gathered critical information that helped Dev in successfully bidding for different contracts. His inputs also helped Dev to identify some dishonest employees, and to retain crucial employees who were considering attractive offers from his competitors. Some of the senior employees did not like the informal influence of Ram and made it difficult for him to continue in the firm. Dev provided him an alternative job with one of his relatives. 
During the last three months Dev has considered different candidates for the post. The back grounds of the candidates are given in the table below.

Dev is primarily looking for a stable and trustworthy driver, who can be a suitable replacement for Ram. His family members do not want Dev to appoint a young driver, as most of them are inexperienced. Dev’s driver is an employee of the firm and hence the appointment has to be routed through the HR manager of the firm. The HR manager prefers to maintain parity among all employees of the firm. He also needs to ensure that the selection of a new driver does not lead to discontent among the senior employees of the firm.

Ethical– a person is called unethical, when he deviates from principles. The principles and their use is often guided by two definitions:
Moral: society’s code for individual survival.
Ethics: an individual’s code for society survival. 
Naresh was a small-time civil contractor in a small city. His major clients were the residents who wanted ad-hoc work like painting, building extensions to be done. His just prices had made him a preferred contractor for most of the clients who preferred him over other civil contractors. Always he followed the principle that client had to be kept happy– only by doing so it would be a win-win situation for both. However due to the unpredictability of such orders from residents, Naresh used to be idle for substantial part of the year. As a consequence, he could not expand his business. His two children were growing up and his existing business could not support their expenses. The medical expense of his elderly parents was another drain on his resources. The constant rise of prices in medical care and medicines was another issue.
For Naresh, family’s concern was predominant. Naresh was, therefore, under pressure to expand his business. He was the sole earning member of his family, and he had to ensure their well-being. He thought that by expanding his business, not only would he be able to care for his family in a better way, as well as offer employment to more number of masons and labourers. That would benefit their families as well. Naresh drew the boundary of his society to include himself, his family members, his employees and their family members.
For expansion, the only option in the city was to enlist as a contractor for government work. Before deciding, he sought advice from another contractor, Srikumar, who had been working on government projects for a long period of time. Srikumar followed the principle of always helping others, because he believed that he would be helped back in return some day. Srikumar had just one advice: “The work is given to those who will win the bidding process and at the same time will give the maximum bribe. Prices quoted for work have to include bribes, else the bills will not get cleared and the supervisors will find multiple faults with the execution of work. This ensures survival and prosperity for contractors.”
When asked about other contractors, Srikumar said: “The government contractors are like a micro-society in themselves, almost like a brotherhood. Within that, they are highly compet itive; however towards any external threat they are united to ensure no harm happens to any of their members.”

Saral Co. is operating in seven north-eastern states of the country. The organization has a history of participative decision making, wherein people deliberate openly about pros and cons of every important decision, and a broad consensus is taken before taking the final decision. In Saral Co. every employee gets a salary proportional to the sales achieved. 
A new General Manager (GM) joined during the beginning of this month and challenged the or ganization’s sole focus on sales to determine salaries. He urged the top management to include two more additional parameters in determining the salaries of the employees, viz. collection of information about competitors and the quality of relationship with the retailers.

Chetan Textile Mills (CTM) has initiated various employee welfare schemes for its employees since the day the mill began its operations. Due to its various welfare initiatives and socially responsible business practices, the organisation has developed an impeccable reputation. Majority of the regular workers in Chetan Mills had membership of Chetan Mills Mazdoor Sangh (CMMS), a non political trade union. CMMS had the welfare of its member as its guiding principle. Both CTM and CMMS addressed various worker related issues on a proactive basis. As a result no industrial dispute had been reported from the organization in the recent past. 
These days majority of the employers deploy large number of contract labourers in their production processes. In an open economy survival of an organization depends on its competitiveness. In order to become competitive, an organization must be able to reduce cost and have exibility in employment of resources. Engaging workers through contractors (contract labourer) reduces the overall labour cost by almost 50%. Indian labour legislations make reduction of regular workers almost impossible, but organisations can overcome this limitation by employing contract labourers. Contract labourers neither get the same bene t as regular employees nor do they have any job security. According to various recent surveys, government owned public sector units and other departments are the biggest employers of contract labourers in the country. Contractors, as middle - men, often exploit the contract labourers, and these government organizations have failed to stop the exploitation.
Over time CTM started engaging a large number of contract labourers. At present, more than 35% of CM’s workers (total 5,000 in number) are contract labourers. CMMS leadership was wary about the slow erosion of its support base as regular workers slowly got replaced by contract workers and feared the day when regular workers would become a minority in the mill. So far, CMMS has refused to take contract labourers as members. Recently, based on rumours, CTM management started to investigate the alleged exploitation of contract labourers by certain contractors. Some contractors felt that such investigations may expose them and reduce their pro t margin. They instigated contract labourers to demand for better wages. Some of the contract labourers engaged in material handling and cleaning work started provoking CTM management by adopting violent tactics.
Today’s news - paper reports that police and CTM security guards red two or three rounds in air to quell the mob. The trouble started while a security guard allegedly slapped one of the contract labourers following a heated argument. Angry labourers set re to several vehicles parked inside the premises, and to the police jeeps.

Alex Company has its o ce at the third oor of a multi - storied building in Mumbai. There are 5 rooms to be allotted to 5 managers (designated M1 to M5), each of whom will occupy one room. Each room has its own advantages and disadvantages. Some have the sea view, while others are closer to either the lift or the dining room, while some are more spacious. Each of the ve managers was asked to rank the room preferences amongst the rooms 301, 302, 303, 304 and 305. Their preferences were recorded as follows: 
Table:

Every Saturday, the members of Raja Harish Chandra Club meet in the evening. All the member of the club are honest and never lie. Last Saturday, the following conversation was heard at one of the table with ve members sitting around it.
Satya Sadhan: In this club not all members are friends with each other. 
Satyabrata: None of the pair of friends in this club has any common friend.
Satyajit: Every pair of member who are not friends has exactly two common friends in this club.
Satya Pramod: There are fewer than 22 people in this club.

In the country of Gagan, air travellers can buy their tickets either directly from the airlines or from three websites that are licensed to offer ticketing services online. In Gagan, most of the commercial transactions are done electronically, and all citizens have an account with its national bank, CeeCee. As a result, the three websites have become popular, and each transaction through these websites carries a surcharge of Gs. 250 (Gs. refers to Guppes, the currency of Gagan). Given below are four post new - year (January 2, 2011, to February 28, 2011) offers from three competing websites: 
Cozy _ travel Offer: Make a con rmed booking for any service ( ight ticket, hotel or rail tickets) through Cozy_travel.com from December 5, 2010 to February 8, 2011 and become eligible for two free air tickets (offer is limited to the base fare). Free tickets have to be booked through online request from January 1, 2011 to February 28, 2011. The request for free tickets should be submitted at least twenty-one days in advance. Free tickets are non-amendable (except the passenger's name) and cannot be cancelled. Free ticket cannot be exchanged for cash or kind with anybody. Cozy_travel will try its best to secure the free ticket as per the request. However, ticket con rmation is subject to airline schedule and set availability in airlines selected and nalized by Cozy_travel from speci c available airlines.
Cool_yatra Offer: Book any air ticket of any airline on Cool_yatra.com on or after December 21, 2010 and get your next ticket free. Under this offer, only the base fare of the free ticket will be refunded by Cool_Yatra.com. The customer will have to bear the rest of the charges (other fees and surcharges). The value of the base fare will be refunded to the passenger on/after March 1 or fteen days after completion of travel on the free ticket (whichever is later). The free ticket can be booked only on Gaga Air ights. The free ticket must be booked within fteen days of booking the original ticket, and the travel date of the free ticket must be fteen days after the booking date of the free ticket. There must be a seven-day gap between the travel date of the main/original ticket and the free ticket. The travel date of the free ticket should be on or before February 28, 2011. The free ticket cannot be transferred. On cancellation of the original ticket(s), you no longer remain eligible for the free ticket(s).
Easy_travel Cash Back Offer: Easy travel offers 25% cash back on all air ticket bookings between December 5, 2010 and February 28, 2011 using CeeCee net banking service or its debit/credit card. The cashback amount will be credited back to the customer's account within twenty-one days of making the transaction. Maximum cashback during the period is Gs. 400 per person per ticket, and the total amount that can be claimed by the customer is Gs. 2,400.
Ek Ke Sath Ek Offer from Easy_travel: Book an AirSpice ticket with Easy_travel using any credit/debit card, and get another ticket absolutely free. The free tickets will be issued on AirSpice on its entire network. The offer is valid for sale from January 11, 2011 to January 31, 2011. The free ticket must be booked at least fteen days prior to the date of travel and needs to be completed within the offer period. The promotion code for the free ticket will get activated only seven days after booking the main ticket. Easy_travel will charge a handling fee of Gs. 1000/- per person for any amendments made on the main ticket. Cancellations of tickets purchased under this offer are not permitted. The free ticket obtained under this offer can not be exchanged for cash and cannot be re-routed

Mrs. Sharma has a house which she wants to convert to a hostel and rent it out to students of a nearby women’s college. The house is a two story building and each door has eight rooms. When one looks from the outside, three rooms are found facing North, three found facing East, three found facing West and three found facing South. Expecting a certain number of students, Mrs. Sharma wanted to follow certain rules while giving the sixteen rooms on rent: 
All sixteen rooms must be occupied.
No room can be occupied by more than three students.
Six rooms facing north is called north wing. Similarly six rooms facing east, west and south are called as east wing, west wing and south wing. Each corner room would be in more than one wing. Each of the wings must have exactly 11 students. The rst oor must have twice as many students as the ground oor.
However Mrs. Sharma found that three fewer students have come to rent the rooms. Still. Mrs.Sharma could manage to allocate the rooms according to the rules

Answer questions based on the following information: 

An automobile company's annual sales of its small cars depends on the state of the economy as well as on whether the company uses some high profile individual as its brand ambassador in advertisements of its product. The state of the economy is "good", "okay" and "bad" with probabilities 0.3, 0.4 and 0.3 respectively. The company may choose a high profile individual as its brand ambassador in TV ads or may go for the TV ads without a high profile brand ambassador.

If the company fixes price at Rs. 3.5 lakh, the annual sales of its small cars for different states of the economy and for different kinds of TV ads are summarized in Table 1. The figures in the first row are annual sales of the small cars when the company uses a high profile individual as its brand ambassador in its TV ads and the ones in the second row are that when the company does not use any brand ambassador in TV ads, for different states of the economy.

 

Table 1

Without knowing what exactly will be the state of the company in the coming one year, the company will either have to sign a TV ad contract with some high profile individual, who will be the company's brand ambassador for its small car for the next one year, or go for a TV ad without featuring any high profile individual. It incurs a cost of Rs. 3.45 lakh (excluding the payment to the brand ambassador) to put a car on the road.

When the company's profit is uncertain, the company makes decisions on the basis of its expected profit. If the company can earn a profit x_i with probability p_i (the probability depends on the state of economy), then the expected profit of the company is:

∑ (x_i × p_i)