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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?
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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.
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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.
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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.Six months into the situation, the economy has bounced back to the normal and the automobile industry is experiencing higher demands than usual. Mast Cars recently received an order of 20,000-cylinder heads. For the timely completion of this order, a lot of contract labourers have been hired. Knowing about the emoluments and perks that a full-time labourer receives at Mast Cars, the contractual labourers started protests to have equal pay. On their demands being refused, a few workers sought to violence. They brutally hit a few full-time employees, set fire to 4 cars on the factory premises and damaged some machinery. Which of the following would be the most appropriate set of steps that the management at Mast Cars should take?1. Immediately call the police to take control over the situation2. Hold a meeting with the labour union and the agitated labourers to reach a consensus3. Remove all contractual labourers with immediate effect4. Agree to the demands and give equal emoluments to permanent and contractual labour5. Shut the production till the mob is under control and the damages have been mitigated

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.Sundar, the head of labour union at Mast Cars saw that another labourer, Ramesh, was stealing a bulb from the factory. Ramesh is extremely poor with an ailing wife and 2 toddlers for a family.Which of the following should Sundar do?1. Let the matter slide as it is a very small incident and Ramesh is extremely poor.2. Tell the labour union and the labourers about it at the earliest.3. Talk to Ramesh and explain him what he did was incorrect and that there will be action taken.4. Give a warning to Ramesh and let the matter go.5. Inform the senior management about the incident and Ramesh's circumstances.

Directions: Read the passage and answer the questions independently of one another.Sham had moved to Chennai at the age of 22 in search of employment in the manufacturing sector. He had completed an industrial training course. Roto Manfacturing hired him after they noticed that he was sincere and that he worked hard. Within four years, he reached the position of a supervisor in the company and was leading a team of 25 workers. Sham’s uncle suggested to him that he start his own manufacturing firm as he had gained sufficient experience in the field. Sham was excited by the thought of running his own firm, and with some financial help from his uncle, he soon started his own manufacturing plant. He convinced a few trustworthy employees and colleagues from Roto Manufacturing to join him in this venture. The venture witnessed rapid growth and within two years, Sham began receiving orders from other countries as well. Sham began expanding the capacity of the unit and in three years’ time, the total number of employees working in his company had reached 600. Around the same time, Chennai was witnessing rapid development in the services industry. Because of this development, labourers were gradually shifting their jobs from the manufacturing sector to the more lucrative services sector as they received better salaries with relatively lower physical workloads. Gradually many of Sham’s employees began to leave the company resulting in a shortage of manpower at the plant. This in turn resulted in Sham not being able to meet the timelines on his projects causing increased customer dissatisfaction.Exisitng employees demanded higher wages to continue in the company. If Sham increases the wages, then his company would find it difficult to remain profitable. He is not able to recruit young people as they did not like the jobs in the manufacturing sector as the sector demanded more physical work.Sham receives a takeover offer from International Manufacturing(IM), a manufacturing conglomerate that wants to acquire his company and its assets. But the price they are offering is not competitive. What should be the immediate course of action for Sham?

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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?
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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.
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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.
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