CAT Exam  >  CAT Questions  >   Directions: Read the passage and answer the ... Start Learning for Free
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.
If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?
  • a)
    Recruit fresh, young graduates who are available at lower wages and train them
  • b)
    Shut down the business, sell all the assets and start a company in the services industry
  • c)
    Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the city
  • d)
    Gradually replace the existing machines with more advanced machinery that will reduce the number of people required
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Directions: Read the passage and answer the questions independently o...
Option A: It is clearly stated in the passage that young people do not prefer jobs in manufacturing sector which demanded more physical work.
Statement B is an extreme step and is not a good business decision. There are other ways to salvage the business and turn it around.
Option C: This does not make sense and is selfish in nature. It is very unlikely that the state government will reduce the development activities as economic development is very critical for overall growth of income and raising the standard of living of everyone in the city.
Option D: Gradually replacing the existing machines with the advanced technology machines which will be operated with a reduced number of workers will be the long term solution to the hiring problem that Sham is facing by using minimum number of workers. This will not only solve the issue of hiring that Sham is facing but will also ensure the business continues to operate smoothly. Hence, statement d is the best option
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
Explore Courses for CAT exam

Similar CAT Doubts

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 Manufacturing 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.Existing 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?

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?

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 Manufacturing 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.Existing 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?

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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer?
Question Description
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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer?.
Solutions for 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. 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: 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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.If you were Sham, what in your opinion would be the most appropriate action to get the company back on track?a)Recruit fresh, young graduates who are available at lower wages and train themb)Shut down the business, sell all the assets and start a company in the services industryc)Request the state government to reduce the development activities in the city and place restrictions on the number of service related companies in the cityd)Gradually replace the existing machines with more advanced machinery that will reduce the number of people requiredCorrect answer is option 'D'. 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