List of top Decision Making Questions asked in XAT

Arya, a graduate from a reputable institute, got a job in an IT company but became bored after a year. Her best friend S, who worked at the same company, joined a top-tier B-school for an MBA, which tempted Arya to pursue the same path. Her friend assured her that an MBA would boost her career prospects and salary. Arya started preparing for an MBA while continuing her job, but the challenge of balancing preparation with work made her consider leaving the job.

There’s a community 30 km outside of the main city. Mr. S started a grocery business in the community after winning the bid by offering way above the rent initially drafted by the community council. The community council, led by Mr. D, agreed to the offer with a performance review every three years. Mr. S also agreed to provide an additional 15% of his grocery sales to the council, banking on the prospect of selling in higher volumes. After setting up his business, Mr. S noticed that SUV owners in the community usually bought goods in bulk from the city once a week and used his store primarily for daily necessities and occasional big purchases like mixer grinders.

"Things which matter most must never be at the mercy of things which matter least."( Maximum 250 words)

Tech predictions often fail not because of wrong models or a lack of imagination, but due to lack of humility in admitting our uncertainty about the future.( Maximum 250 words )

Read the following scenario and answer the THREE questions that follow.
DeepSea is a natural gas extraction company that retrieves natural gas from rock formations beneath the seabed. This gas is then transported through its extensive pipeline network to a bottling plant, located at the sea surface, for processing. The gas in rock formations is pressurized, enabling it to flow to the surface and reach the bottling plant. Yet, excessive pressure can cause bursts in the pipeline, leading to uncontrolled gas release, known as blowout. A blowout carries a staggering cost, encompassing not only environmental damage but also reputation loss and financial losses totaling crores of rupees. Additionally, the impacted section of the pipeline requires a complete replacement. Industry safety regulations divide the pipeline network into three levels: Level 3 is the part under the seabed, Level 2 is the part above the seabed but in the deep sea, while Level 1 is near the surface. The safety regulations require multiple blowout preventer valves, from now on simply referred to as valves, to be placed at the three different levels of the pipeline network. The valves are normally kept closed, but when the pressure in any part of the pipeline rises beyond a critical level, nearby valves are opened remotely to release the pressure in a controlled manner to prevent blowout. The number of valves across the pipeline helps localize the pressure release, with a greater number of valves providing a backup mechanism, helping in improving pressure localization in case of a blowout. Given that the valves themselves can occasionally malfunction and not release the pressure when needed, using a higher number of valves ensures that a malfunctioning valve can seek the safety of a nearby functioning valve. 
A valve can malfunction in two ways: it may fail to release pressure when needed, as previously mentioned, or it can leak gas during regular operation, resulting in unwanted losses. When a valve malfunctions, it necessitates manual replacement. 
In the DeepSea Network, 30% of the valves are located at Level 3, which is the deepest level. The remaining valves are evenly distributed between the top two levels. These valves are critical to ensuring safety and are exclusively supplied by GoValve, a highly specialized manufacturer that holds a monopoly in the country’s market.

Read the following scenario and answer the THREE questions that follow.
ABC Business School was a school with a difference. Regarded as one of the top business schools in western India, but relatively unknown beyond that, the school catered to smaller organizations seeking to hire students for sales and marketing positions, with occasional openings in HR roles. These students were open to secure job opportunities, even if they offered relatively lower salaries. The organizations, that recruited from ABC, did not really care for the talent, but appreciated the students' ability to follow orders without questioning them. The school’s strength laid in its alumni, who consistently returned to the institution for recruitment, thereby ensuring the school’s continued existence. Given the placement record, the school attracted a specific segment of business school aspirants, who wanted a solid job but were not excited about learning.

Read the following scenario and answer the THREE questions that follow.
Ms. Vineeta Lama, a respected figure in the small town of Jampur, found herself stranded on the road, once again, when her old small hatchback car broke down. Finding herself alone on the deserted road with no one to help, Vineeta, in desperation called Shyam Saigal, the General Manager of Balaji Motors − the only dealership in Jampur that sells Diplomatico cars, the brand that Vineeta drives. Vineeta knew Shyam from her frequent visits for getting her hatchback car serviced. Surprisingly, he arrived within fifteen minutes, accompanied by a mechanic from his dealership. Further, he arranged for the vehicle to be towed and kindly offered Vineeta a ride home. On the way back, he advised Vineeta to exchange her old car with a new Sports Utility Vehicle (SUV) on a good discount from his dealership. He assured her that he would add several additional services to ensure her SUV remained in excellent condition for many years ahead.

Read the following scenario and answer the questions that follow.
Kasta, a small industrial town hosted a steel plant and its associated ancillary companies. Most of its residents were steel plant employees from different states of the country. While the town offered employment opportunities, it lacked an airport. For those wanting to fly, the nearest airport was in Michaelganj, 100 kms from Kasta. To reach the airport, people rented taxi services available at Kasta, and Prabhu was one such taxi-service provider.
Prabhu’s rates were reasonable - a trip to airport cost Rs. 2200, but for a round trip, the fare was Rs. 3000. Yet, it was not just the affordability that made him popular, his reputation for punctuality and reliability was unmatched. When it came to ensuring the safety of women travelling alone, he would always be the first choice. Such was his trustworthiness that even the steel plant would solicit his services when expecting solo female visitors. Moreover, whenever residents encountered issues with their personal cars, they would turn to Prabhu for help.
However, the world shifted when the COVID-19 pandemic struck. Travel restrictions and safety concerns limited Prabhu’s trips to Michaelganj for over a year and a half. Financial strain followed, with accumulating interest on his home loan. He was weighed down by debt, but things improved once COVID-19 travel restrictions were lifted. Having faced financial hardships during COVID-19, he sought to offset his losses by raising the fare. Yet, he was aware of the stiff competition in town, where many others offered services at a similar fare as his.

Read the following scenario and answer the questions that follow.
Raman had been working tirelessly as a Project Manager in the IT department of Flying Groceries, a renowned app-based supply chain company, for the past three years. Having graduated from a top-tier engineering college, he dived straight into the corporate world, managing projects with great zeal that inspired his seniors.
At the end of his first year with Flying Groceries, impressed with his hard work, Raman’s boss, Suraj, the founder-CEO of Flying Groceries, fast-tracked his promotion and made him Delivery Manager responsible for multiple projects of a vertical. Suraj also promised Raman the position of Chief Operation Officer in the fifth year of his tenure.
In search of a greater career trajectory, Raman pursued entrance exams for business schools. His efforts bore fruits as he secured a place in the country’s best business school, known for a strong alumni base, stellar placement records and demanding academic requirements.
Raman was delighted; he had three months to join the business school. Flying Groceries demanded that any employee who wished to leave the organization should give at least a month’s notice. Raman decided to continue working and enriching his work experience, which will be beneficial when applying to companies after graduating from the business school. Therefore, he decided not to share the news of the offer with anyone else for the time being.

Read the following scenario and answer the questions that follow.
In Symbolis, an upcoming medium sized IT services organization, only 1% of the employees were awarded an annual performance bonus. This annual performance bonus was decided by a committee formed of different functional heads. When Ms. Nalini Kattakayam received the annual bonus for the first time in her five years at Symbolis, Ms. Shalini Sampath, a colleague with seven years of tenure at Symbolis, told Nalini that this annual bonus was less a reflection of Nalini’s performance and more a recognition of those who have fostered a strong rapport with the powers that be. Incidentally, Shalini had never received any performance bonus in her tenure at the company.

Read the following scenario and answer the questions that follow.
Mr. Singh lived in a sprawling housing society. He employed two part-time domestic helps, Vimla and Sharda. Vimla was responsible for cleaning and dusting, while Sharda took care of cooking.
Once Sharda fell ill and consequently took leave for three days. When Sharda returned to work, she learned that Mr. Singh’s gold ring, a gift from his mother, was missing. Suspecting theft, Mr. Singh had terminated Vimla. Mr. Singh asked Sharda to take additional responsibility of cleaning the house, along with an offer to double her salary. Sharda accepted the offer as her previous two jobs were lost due to frequent health-related absences. She was struggling to make ends meet; this offer would go a long way to help her.
Next day, while cleaning under the dressing table, Sharda found the gold ring. Overjoyed, Mr. Singh expressed his gratitude by presenting Sharda a reward of one thousand rupees! However, he made no mention of reinstating Vimla.

Caselet (Questions 101-104): Shekhar, an MBA from Singapore, returned to his hometown of Jamshedpur. Jamshedpur had a population of 10 lacs and one of the highest per capita incomes among Indian cities. Shekhar loved music. While listening to his favourite song on satellite radio one day, he wondered if he could combine his passion with a business. A few weeks later, by coincidence, Music World called for expressions of interest from potential franchisees. Jamshedpur did not have a single good music store where residents could buy quality, variety, and the latest releases.

Music World wanted its franchisees to own at least 1200 square feet of space and invest Rs. 30 lacs. Profits were to be split in the ratio of 3:7 between Music World and the franchisee. Shekhar liked the idea of working with a well-known brand, but he worried whether Rs. 30 lacs was too much money to put in. He did not have the full amount and was thinking of borrowing from a bank. He checked with other Music World franchisees in towns like Patna and Ranchi, expecting similar footfall in Jamshedpur. A franchisee in Patna reported monthly sales revenue of Rs. 1 to 2 lacs, with a profit margin of 25 to 30 percent. Satisfied with this, Shekhar decided to go ahead.

He then began looking for space. Jamshedpur had three main areas: Bistupur, Sakchi, and Sonari, all connected by good roads. Bistupur was a business area with most of the high-end retail stores, shopped at by the upper-middle and higher classes, and was also the city's education hub. Sakchi was a growing lower-middle-class business area, while Sonari was mostly residential.

Shekhar preferred Bistupur, since it was where he did his own shopping. But he ran into problems there: space was hard to find, and rentals had touched Rs. 30 to 40 per square foot per month, compared to Rs. 15 to 20 per square foot per month in Sakchi and Sonari. A friend who lived in Sakchi told him that several branded outlets were opening up there, and that it looked like the fastest-growing market in Jamshedpur with the highest share of teenagers. Still, Shekhar was against Sakchi because of its "downmarket" image. He wanted to target the college-going crowd, and he expected to find them in Bistupur.

The high real-estate cost in Bistupur, set against his low opinion of the Sakchi market, left Shekhar confused. To think the decision through properly, he decided to drive down the Jamshedpur-Ranchi highway in his newly bought car.

Question: What could be the most likely reason for Shekhar's bias in favour of Bistupur?

Caselet (Questions 101-104): Shekhar, an MBA from Singapore, returned to his hometown of Jamshedpur. Jamshedpur had a population of 10 lacs and one of the highest per capita incomes among Indian cities. Shekhar loved music. While listening to his favourite song on satellite radio one day, he wondered if he could combine his passion with a business. A few weeks later, by coincidence, Music World called for expressions of interest from potential franchisees. Jamshedpur did not have a single good music store where residents could buy quality, variety, and the latest releases.

Music World wanted its franchisees to own at least 1200 square feet of space and invest Rs. 30 lacs. Profits were to be split in the ratio of 3:7 between Music World and the franchisee. Shekhar liked the idea of working with a well-known brand, but he worried whether Rs. 30 lacs was too much money to put in. He did not have the full amount and was thinking of borrowing from a bank. He checked with other Music World franchisees in towns like Patna and Ranchi, expecting similar footfall in Jamshedpur. A franchisee in Patna reported monthly sales revenue of Rs. 1 to 2 lacs, with a profit margin of 25 to 30 percent. Satisfied with this, Shekhar decided to go ahead.

He then began looking for space. Jamshedpur had three main areas: Bistupur, Sakchi, and Sonari, all connected by good roads. Bistupur was a business area with most of the high-end retail stores, shopped at by the upper-middle and higher classes, and was also the city's education hub. Sakchi was a growing lower-middle-class business area, while Sonari was mostly residential.

Shekhar preferred Bistupur, since it was where he did his own shopping. But he ran into problems there: space was hard to find, and rentals had touched Rs. 30 to 40 per square foot per month, compared to Rs. 15 to 20 per square foot per month in Sakchi and Sonari. A friend who lived in Sakchi told him that several branded outlets were opening up there, and that it looked like the fastest-growing market in Jamshedpur with the highest share of teenagers. Still, Shekhar was against Sakchi because of its "downmarket" image. He wanted to target the college-going crowd, and he expected to find them in Bistupur.

The high real-estate cost in Bistupur, set against his low opinion of the Sakchi market, left Shekhar confused. To think the decision through properly, he decided to drive down the Jamshedpur-Ranchi highway in his newly bought car.

Question: Which one of the following is the most important decision criterion in such a business situation?

Caselet (Questions 97-100): Om Chowdhury was one of the supervisors in the Fire and Safety (F&S) department of Maqsood Textile Mills. He was a distant cousin of Mr. Bhiwani, the General Manager (Personnel & Administration), and the Personnel and Administration department handled all personnel-related decisions. It was often rumored that Om had gotten the job because of his cousin's influence. Om, however, was careful in his work and never gave anyone a reason to complain. He was known to be a quiet man who kept to himself and his duties.

All F&S supervisors reported to Mr. Rabindra, the shop-floor manager. The mill ran on a three-shift basis, and Rabindra allotted supervisors to the different shifts. Supervisors had to stay present through the whole shift and run scheduled checks on the machinery and firefighting equipment. For some reason, Rabindra kept assigning Om to the night shift more often than the other supervisors. Om never objected to this, while the other supervisors often pleaded with Rabindra to be given day shifts instead. Staying awake and alert through the night shift was one of the hardest parts of the job.

After a while, Rabindra noticed that Om seemed indifferent to his work. Twice he found Om missing from his cabin, and others told him Om had been seen wandering different parts of the shop floor. Rabindra called Om in and reminded him of his responsibilities. Om did not argue and promised not to be careless again. Rabindra also raised the matter with Mr. Bhiwani, who called Om in for a personal talk and reminded him that their family tie made the situation awkward for everyone. Om agreed to improve, and soon he became a model supervisor, even going out of his way to help employees with their problems.

Three months later, Rabindra visited the plant at night and, looking into the F&S office, found Om playing solitaire on the office computer. Rabindra fired Om on the spot.

The next morning, Mr. Bhiwani called Rabindra and asked how he could fire an employee like that, and suggested he reconsider the dismissal. Rabindra replied, "This decision has already been made. There will be no turning back."

Question: Of the options below, which could have been a better response from Mr. Rabindra when he saw Om playing solitaire?

Caselet (Questions 101-104): Shekhar, an MBA from Singapore, returned to his hometown of Jamshedpur. Jamshedpur had a population of 10 lacs and one of the highest per capita incomes among Indian cities. Shekhar loved music. While listening to his favourite song on satellite radio one day, he wondered if he could combine his passion with a business. A few weeks later, by coincidence, Music World called for expressions of interest from potential franchisees. Jamshedpur did not have a single good music store where residents could buy quality, variety, and the latest releases.

Music World wanted its franchisees to own at least 1200 square feet of space and invest Rs. 30 lacs. Profits were to be split in the ratio of 3:7 between Music World and the franchisee. Shekhar liked the idea of working with a well-known brand, but he worried whether Rs. 30 lacs was too much money to put in. He did not have the full amount and was thinking of borrowing from a bank. He checked with other Music World franchisees in towns like Patna and Ranchi, expecting similar footfall in Jamshedpur. A franchisee in Patna reported monthly sales revenue of Rs. 1 to 2 lacs, with a profit margin of 25 to 30 percent. Satisfied with this, Shekhar decided to go ahead.

He then began looking for space. Jamshedpur had three main areas: Bistupur, Sakchi, and Sonari, all connected by good roads. Bistupur was a business area with most of the high-end retail stores, shopped at by the upper-middle and higher classes, and was also the city's education hub. Sakchi was a growing lower-middle-class business area, while Sonari was mostly residential.

Shekhar preferred Bistupur, since it was where he did his own shopping. But he ran into problems there: space was hard to find, and rentals had touched Rs. 30 to 40 per square foot per month, compared to Rs. 15 to 20 per square foot per month in Sakchi and Sonari. A friend who lived in Sakchi told him that several branded outlets were opening up there, and that it looked like the fastest-growing market in Jamshedpur with the highest share of teenagers. Still, Shekhar was against Sakchi because of its "downmarket" image. He wanted to target the college-going crowd, and he expected to find them in Bistupur.

The high real-estate cost in Bistupur, set against his low opinion of the Sakchi market, left Shekhar confused. To think the decision through properly, he decided to drive down the Jamshedpur-Ranchi highway in his newly bought car.

Question: Suppose sales in Patna and Bistupur are likely to be the same, how many years would it take for Shekhar to recoup the investment (consider zero inflation)?

Caselet (Questions 101-104): Shekhar, an MBA from Singapore, returned to his hometown of Jamshedpur. Jamshedpur had a population of 10 lacs and one of the highest per capita incomes among Indian cities. Shekhar loved music. While listening to his favourite song on satellite radio one day, he wondered if he could combine his passion with a business. A few weeks later, by coincidence, Music World called for expressions of interest from potential franchisees. Jamshedpur did not have a single good music store where residents could buy quality, variety, and the latest releases.

Music World wanted its franchisees to own at least 1200 square feet of space and invest Rs. 30 lacs. Profits were to be split in the ratio of 3:7 between Music World and the franchisee. Shekhar liked the idea of working with a well-known brand, but he worried whether Rs. 30 lacs was too much money to put in. He did not have the full amount and was thinking of borrowing from a bank. He checked with other Music World franchisees in towns like Patna and Ranchi, expecting similar footfall in Jamshedpur. A franchisee in Patna reported monthly sales revenue of Rs. 1 to 2 lacs, with a profit margin of 25 to 30 percent. Satisfied with this, Shekhar decided to go ahead.

He then began looking for space. Jamshedpur had three main areas: Bistupur, Sakchi, and Sonari, all connected by good roads. Bistupur was a business area with most of the high-end retail stores, shopped at by the upper-middle and higher classes, and was also the city's education hub. Sakchi was a growing lower-middle-class business area, while Sonari was mostly residential.

Shekhar preferred Bistupur, since it was where he did his own shopping. But he ran into problems there: space was hard to find, and rentals had touched Rs. 30 to 40 per square foot per month, compared to Rs. 15 to 20 per square foot per month in Sakchi and Sonari. A friend who lived in Sakchi told him that several branded outlets were opening up there, and that it looked like the fastest-growing market in Jamshedpur with the highest share of teenagers. Still, Shekhar was against Sakchi because of its "downmarket" image. He wanted to target the college-going crowd, and he expected to find them in Bistupur.

The high real-estate cost in Bistupur, set against his low opinion of the Sakchi market, left Shekhar confused. To think the decision through properly, he decided to drive down the Jamshedpur-Ranchi highway in his newly bought car.

Question: How best should Shekhar resolve his confusion?

Caselet (Questions 97-100): Om Chowdhury was one of the supervisors in the Fire and Safety (F&S) department of Maqsood Textile Mills. He was a distant cousin of Mr. Bhiwani, the General Manager (Personnel & Administration), and the Personnel and Administration department handled all personnel-related decisions. It was often rumored that Om had gotten the job because of his cousin's influence. Om, however, was careful in his work and never gave anyone a reason to complain. He was known to be a quiet man who kept to himself and his duties.

All F&S supervisors reported to Mr. Rabindra, the shop-floor manager. The mill ran on a three-shift basis, and Rabindra allotted supervisors to the different shifts. Supervisors had to stay present through the whole shift and run scheduled checks on the machinery and firefighting equipment. For some reason, Rabindra kept assigning Om to the night shift more often than the other supervisors. Om never objected to this, while the other supervisors often pleaded with Rabindra to be given day shifts instead. Staying awake and alert through the night shift was one of the hardest parts of the job.

After a while, Rabindra noticed that Om seemed indifferent to his work. Twice he found Om missing from his cabin, and others told him Om had been seen wandering different parts of the shop floor. Rabindra called Om in and reminded him of his responsibilities. Om did not argue and promised not to be careless again. Rabindra also raised the matter with Mr. Bhiwani, who called Om in for a personal talk and reminded him that their family tie made the situation awkward for everyone. Om agreed to improve, and soon he became a model supervisor, even going out of his way to help employees with their problems.

Three months later, Rabindra visited the plant at night and, looking into the F&S office, found Om playing solitaire on the office computer. Rabindra fired Om on the spot.

The next morning, Mr. Bhiwani called Rabindra and asked how he could fire an employee like that, and suggested he reconsider the dismissal. Rabindra replied, "This decision has already been made. There will be no turning back."

Question: Out of the options below, which one best sums up the learning from the solitaire incident?

Caselet (Questions 97-100): Om Chowdhury was one of the supervisors in the Fire and Safety (F&S) department of Maqsood Textile Mills. He was a distant cousin of Mr. Bhiwani, the General Manager (Personnel & Administration), and the Personnel and Administration department handled all personnel-related decisions. It was often rumored that Om had gotten the job because of his cousin's influence. Om, however, was careful in his work and never gave anyone a reason to complain. He was known to be a quiet man who kept to himself and his duties.

All F&S supervisors reported to Mr. Rabindra, the shop-floor manager. The mill ran on a three-shift basis, and Rabindra allotted supervisors to the different shifts. Supervisors had to stay present through the whole shift and run scheduled checks on the machinery and firefighting equipment. For some reason, Rabindra kept assigning Om to the night shift more often than the other supervisors. Om never objected to this, while the other supervisors often pleaded with Rabindra to be given day shifts instead. Staying awake and alert through the night shift was one of the hardest parts of the job.

After a while, Rabindra noticed that Om seemed indifferent to his work. Twice he found Om missing from his cabin, and others told him Om had been seen wandering different parts of the shop floor. Rabindra called Om in and reminded him of his responsibilities. Om did not argue and promised not to be careless again. Rabindra also raised the matter with Mr. Bhiwani, who called Om in for a personal talk and reminded him that their family tie made the situation awkward for everyone. Om agreed to improve, and soon he became a model supervisor, even going out of his way to help employees with their problems.

Three months later, Rabindra visited the plant at night and, looking into the F&S office, found Om playing solitaire on the office computer. Rabindra fired Om on the spot.

The next morning, Mr. Bhiwani called Rabindra and asked how he could fire an employee like that, and suggested he reconsider the dismissal. Rabindra replied, "This decision has already been made. There will be no turning back."

Question: The details of the entire episode have become common knowledge among all the employees of the company. Out of the options below, which one presents the best way for the top management to resolve the issue so as to benefit the organization as a whole?