According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOsandrsquo; salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than andlsquo;the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker andrsquo;s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer?

EduRev

All Courses

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

CAT Exam > CAT Questions > According to recent reports, CEOs of large or...

Q. Which of the following, if true, would strengthen the speaker ’s argument?

(2011)

a)
CEOs of small organisations come from good educational background
b)
CEOs of big organisations are very difficult to hire
c)
A few big family businesses have CEOs from within the family
d)
CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisations

Correct answer is option 'A'. Can you explain this answer?

Join for Free

Join for Free

Verified Answer

According to recent reports, CEOs of large organisations are paid more...

If the given statement that CEO of small organization come from good educational background is true it will strengthen the speaker’s argument, the reason being the speaker wants that CEOs of big and small organizations should be paid similarly and if the CEO of small organization comes from good educational background they should receive a similar amount which a CEO of big organization receives.

View all questions of this test

Most Upvoted Answer

According to recent reports, CEOs of large organisations are paid more...

Explanation:
Key Points:
- The speaker argues that CEOs' salaries should be related to performance, not the size of the organisation they lead.
- The speaker believes that all CEOs, regardless of the size of the organisation, invest significant time and energy in managing their responsibilities.
- The speaker suggests that stress levels between CEOs of big and small organisations are not significantly different.
Analysis:
- Option A strengthens the speaker's argument by highlighting that CEOs of small organisations come from a good educational background. This implies that the qualifications and capabilities of CEOs, rather than the size of the organisation they lead, should determine their compensation.
Reasoning:
- If CEOs of small organisations have strong educational backgrounds, it supports the idea that performance and qualifications should be the basis for CEO compensation, not the size of the organisation they lead. This aligns with the speaker's stance that all CEOs should be paid according to their performance.
Therefore, option A is the correct choice as it directly supports the speaker's argument that CEO compensation should be tied to performance rather than organisational size.

Answered by Wizius Careers · View profile

View all answers Start learning for free

Explore Courses for CAT exam

Similar CAT Doubts

InstructionsRead the passage carefully and answer the questions givenMore and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible -and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures -often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.To the debit side of the ledger must also be added the transactional costs of metrics: the expenditure of employee time by those tasked with compiling and processing the metrics in the first place - not to mention the time required to actually read them. . . .Q.Of the following, which would have added the least depth to the author’s argument?

View answer

InstructionsRead the passage carefully and answer the questions givenMore and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible -and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures -often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.To the debit side of the ledger must also be added the transactional costs of metrics: the expenditure of employee time by those tasked with compiling and processing the metrics in the first place - not to mention the time required to actually read them. . . .Q.What main point does the author want to convey through the examples of the police officer and the surgeon?

View answer

InstructionsRead the passage carefully and answer the questions givenMore and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible -and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures -often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.To the debit side of the ledger must also be added the transactional costs of metrics: the expenditure of employee time by those tasked with compiling and processing the metrics in the first place - not to mention the time required to actually read them. . . .Q.What is the main idea that the author is trying to highlight in the passage?

View answer

Read the passage carefully and answer the questions given More and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible - and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanors. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures - often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.Q. Of the following, which would have added the least depth to the author’s argument?

View answer

Read the passage carefully and answer the questions given More and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible - and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures - often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.Q. What main point does the author want to convey through the examples of the police officer and the surgeon?

View answer

Top Courses for CATView all

Quantitative Aptitude (Quant)

CAT Mock Test Series 2025

Crash Course for CAT

Mock Test Series for SNAP

Mock Test Series for XAT

Top Courses for CAT

View all

According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer?

Share with a Friend

Answer this doubt

Question Description
According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer?.

Solutions for According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice According to recent reports, CEOs of large organisations are paid more than CEOs of small organisations. It does not seem fair that just because a CEO is heading a big organisation she/he should be paid more. CEOs’ salary should be related to performance, especially growth in terms of sales and profits.Of course, big organisations are more complex than ‘the small, but all CEOs require significant amount of energy and time in managing organisations. There is no proof that CEOs of big organisations are more stressed than CEOs of small organisations.All CEOs should be paid according to their performance.Q. Which of the following, if true, would strengthen the speaker ’s argument? (2011)a)CEOs of small organisations come from good educational backgroundb)CEOs of big organisations are very difficult to hirec)A few big family businesses have CEOs from within the familyd)CEOs in big organisation take much longer to reach top, as compared to their counterparts in small organisationsCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CAT tests.

Explore Courses for CAT exam