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Questions 115 to 117): The year 2004 was a great year for Top-Cloth cotton mill. Manufacturing towels for the export market employing more than 2000 workers, the company had an impressive growth in sales and profits. The Chairman felt that employees were entitled to a share in the profits and it was proposed that the employee mess be air-conditioned. The proposal was discussed in a meeting that was attended by, among other senior officials, the marketing director, the personnel director and the finance director. The proposal was based on the fact that the shop floor of the mill often had temperatures in excess of 40°C with a relative humidity of 99%. The air-conditioned mess would represent management's appreciation of the employee's hard work. At the end of 2005, management reviewed the mill's performance. Profits were higher, and employee attrition was negligible. Chairman decided that employees deserved additional recognition for their fine work. Since the mess had already been air-conditioned, the chairman wanted to know if the employees appreciated this sort of action. In the course of discussion the chairman asked the personnel director to send a questionnaire to a sample of fifty employees and obtain their reaction to the airconditioned mess. The management agreed to decide only after obtaining the feedback from the employees. The personnel director mailed a simple form to fifty employees asked them for the following information: “Please state your reaction to the air-conditioned mess.” Of the fifty forms mailed, forty-six were returned. The answers received were as follows: Reaction Frequency “I did not know it was air-conditioned.” 16 “I never eat there” 8 “If management can spend money 6 like that, they should pay us more” “I wish the entire mill was 8 air-conditioned.” “The mess is for management employees.” 4 “It is OK.” 2 Miscellaneous comments 2 115. The main conclusion(s) about the personnel director that emerge(s) from this situation is(are): A. The personnel director did not have the competence to manage an employee feedback survey, and should have been given the task to a professional consultant. B. The personnel director was responsible for employees' reactions. C. The personnel director had failed in his duty of maintaining constant touch with employees. D. The cost of air-conditioning is a waste, since its beneficiaries did not feel any benefit. 1. B only 2. C only 3. D only 4. A, C and D 5. A, B, C and D 116. Management of Top-Cloth cotton mill considers itself to be socially conscious and its decisions are often re-examined for their social relevance and the impact on society. In view of this consideration, what could have been considered before deciding on profit sharing? A. communicating management's intentions via employee newsletters B. taking employee's inputs in designing the cafeteria's interiors and installation of air-conditioning C. considering employee's views on different ways of sharing excess profits D. investing in capacity expansion to take care of the booming export market E. dividing the profits equally among the workers and shareholders The options in decreasing order of their impact
on society: 1. B, C, E, D, A 2. D, E, C, B, A 3. C, B, A, D, E 4. A, B, C, D, E 5. E, D, C, B, A 117. This decision-making situation best highlights: 1. managerial short-sightedness in decision making 2. managerial benevolence in sharing profits among the workers 3. managerial incompetence in handling a negative feedback in employee survey 4. inefficient infrastructure management 5. None of the above
@anupam001 115. 2) C only. Nothing suggests that the personnel director was responsible for the employees' reactions and he did conduct the feedback so you can't say he's incompetent in that field. D is not about the personnel manager.
116. 2. Capacity expansion would bring in more employment and more profits in the future, benefiting the society the most. In the short run, dividing profits equally can be considered socially relevant. B and A are trivial issues so left them for the last.
117. 2,3,4 removed easily. Between 1 and 5 wouldn't exactly call it short sightedness so going with 5.
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