CAT Exam  >  CAT Questions  >   Directions: Analyse the given arguments and ... Start Learning for Free
Directions: Analyse the given arguments and answer the questions that follow
An automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.
A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?
  • a)
    Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.
  • b)
    Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.
  • c)
    Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.
  • d)
    Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Directions: Analyse the given arguments and answer the questions that...
Given the circumstances, it would be highly unethical to fire the employees, irrespective of their personal disposition. This eliminates option A and D. Option B although might seem a safer path, but it would lead to shutting of all production for the company, which is turn leads to no revenue earned by Mast Cars leading them to bigger losses. Also, it is not clear from the information given how the industry is hit by the slowdown. Option C is the best possible choice here as it minimizes the repercussions that the labour will have to face.
Free Test
Community Answer
Directions: Analyse the given arguments and answer the questions that...
Analysis of the Situation
Mast Cars is facing financial difficulties due to a downturn in the economy, which is impacting the entire automobile industry. The management needs to make strategic decisions to ensure sustainability while maintaining employee morale and trust.
Reasons for Choosing Option C
  • Transparency and Trust: Explaining the situation to the employees and the labour union fosters transparency. It builds trust and ensures that employees feel involved in the decision-making process.
  • Minimizing Negative Impact: By cutting back on non-essential expenditures like bonuses, R&D, and recreational activities, the company can preserve jobs while managing its finances. This approach is less disruptive than layoffs.
  • Employee Retention: Keeping employees engaged and employed, even with reduced benefits, maintains the workforce's skill set and loyalty. This is crucial for a quick recovery when economic conditions improve.
  • Long-Term Viability: Rather than resorting to layoffs (as suggested in options a and d), which can lead to a loss of talent and increased re-hiring costs later, option C focuses on short-term sacrifices for long-term gains.
  • Collaborative Approach: Engaging the labour union in discussions signals a collaborative effort to navigate the crisis. It reinforces the company's commitment to its employees and encourages a united front during tough times.

Conclusion
Option C is the most balanced and strategic approach for Mast Cars, prioritizing employee engagement and long-term stability over immediate cost-cutting measures. This solution not only addresses the financial constraints but also safeguards the company’s reputation and employee morale during challenging economic conditions.
Explore Courses for CAT exam

Top Courses for CAT

Question Description
Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. 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 Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. 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 Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Analyse the given arguments and answer the questions that followAn automobile manufacturing and assembling unit, Mast Cars, opened its new factory in the outskirts of Gaongram 7 years back. They have a dedicated non-political labour union cell, which along with the ardent management of Mast Cars addresses all labour related issues and solves the grievances at the earliest. With high-quality products, services and excellent labour policies, Mast Cars has gained substantial popularity over a very small period of time.A recent hit in the economy has hugely affected the automobile industry and Mast Cars is running out of funds to keep the business running. Which of the following should the management act on?a)Fire a few employees for now with a promise of re-hiring them as soon as the economic conditions get better.b)Put the employees on minimal wages and shut down the factory for a few months till the economy bounces back to normal.c)Explain the situation to all the labour and the labour union, and cut back on expenditures like bonuses, R&D, recreational activities, allowances, etc. till things bounce back to normal.d)Fire only the employees who are not the only bread earners in the family (or don't have a family to support) for now with a promise of re-hiring them as soon as the economic conditions get better.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CAT tests.
Explore Courses for CAT exam

Top Courses for CAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev