Q&a-Mcq (HR & Ob)

OCEAN framework
Ratan Tata, Past Chairman of the Tata Group and current Chairman Emeritus of Tata
Sons, when asked about the thought behind launching ‘Tata Nano’, said, ‘What really
motivated me to produce such a vehicle (Nano) was constantly seeing Indian families
riding on scooters, maybe a child sandwiched between the mother and father, riding
to wherever they were going, often on slippery roads in the dark’. Thus, he wanted to
make an affordable car for Indian families.
Based on this information, which of these statements is true about Ratan Tata’s
personality? (Note that more than one option may be correct.)
Ratan Tata is open to new ideas and implementing them. Nano is a perfect
example of an innovation or a new thought.
✓ Correct
Feedback:
The idea of launching a car that would meet the financial requirements of the Indian
families who are willing to shift from a scooter to a car was accepted by Ratan Tata, as
he was willing to create new experiences for his users.
Ratan Tata is low on conscientiousness, as he has a sense of concern for the

Indian families that ride scooters on slippery and dark roads.
Ratan Tata scores high on agreeableness as he is willing to help and be

considerate of the families by following a pricing strategy that would make
the car affordable to all Indian families.
✓ CorrectYou missed this!

Feedback:
Ratan Tata scores high on agreeableness, as he is willing to help the families have a
safer experience while driving.
Lernen
A corporate mentorship programme is run by an organisation 'Srtzee' to help and
guide its employees. A mentor is assigned to each employee and the mentee is asked
to learn by simply observing their mentor's behaviour and practices. Which of the
following statements is true about this programme?
A corporate mentorship programme is an example of social learning
✓ Correct
Feedback:
Social learning involves learning from other individuals.
A corporate mentorship programme is an example of visual learning
A corporate mentorship programme is an example of auditory learning
A corporate mentorship programme is an example of kinesthetic

Attribution Theory
Suppose you are attending a monthly meeting with your team, manager and other
seniors. One of your team members, Neeraj, has been underperforming since the last
month and has also been taking a lot of leaves. Due to this, the team’s performance
has decreased considerably.
But to everybody’s surprise, your manager, along with other seniors, praise Neeraj for
his performance. On the other hand, the other poor performers are reprimanded. This
situation reminds you of the time when your manager scolded you in the last meeting
due to your average performance.
With respect to the manager’s behaviour, determine the type of attribution that occurs
in this situation.
Distinctiveness
✓ Correct
Feedback:
Distinctiveness refers to the extent to which a person behaves differently in similar
situations. Here, the manager is behaving differently with each of his employees when
the situations are similar. This shows that his behaviour is distinctive.
Consensus
Consistency
Bias
Hari’s team generally overachieves their sales targets. He attributes the complete credit
to his effort of training his employees and motivating them. In one quarter, when he
was unable to meet the sales target, he simply blamed the market for the same.
Determine the type of bias in play in Hari’s situation.
Halo effect
✕ Incorrect
Feedback:
Recollect the bias types and identify when they occur.
Hint: Which bias involves the individual attributing the success to themselves and failure
to external factors?
Self-serving bias
✓ Correct
Feedback:
Self-serving bias refers to attributing your success to internal factors such as your
hard work and efforts, and failure to external factors.
Contrast effect
Selective perception
Job Attitude
Match the statements with their respective heads of attitude.
Attitude Statement
1. Job satisfaction a. My work is interesting and challenging
2. Job involvement b. I want to contribute towards increasing the brand stature of my company
3. Organisational c. I have just been asked by my department head to be part of a task force that is
commitment responsible for achieving a particular change in the workplace
1-a, 2-b, 3-c
1-b, 2-a, 3-c
✕ Incorrect
Feedback:
Job satisfaction refers to the employee being satisfied with the job that they do.
Job involvement refers to an employee’s ability to identify with the job and actively
participate in it.
Organisational commitment is when the individual identifies with the values of the
organisation and wishes to be associated with the organisation that they are working
in.
1-a, 2-c, 3-b
✓ Correct
Feedback:
Job satisfaction refers to the employee being satisfied with the job that they do.
Job involvement refers to an employee’s ability to identify with the job and actively
participate in it.
Organisational commitment is when the individual identifies with the values of the
organisation and wishes to be associated with the organisation that they are working
in.
1-c, 2-a, 3-b

Job Attitude
Baristas play a crucial role in determining customer engagement for coffee chains. A barista’s
role is to prepare coffee and translate the hard work of everyone else in the chain into an
enjoyable and valuable experience. A barista is also a salesperson, a consultant and a curator
of experience. Hence, it becomes extremely important for coffee chains to keep their baristas
happy and motivated.
Coffereo, a coffee chain, ensures that in the 6,000 branches that it operates in currently, none
of the outlets are understaffed. This helps minimise work pressure on the staff. It also moved
away from annual performance appraisal to real-time benefits such as tuition reimbursement,
health insurance, etc. for its part-time workers and several other benefits for its full-time
employees. However, despite keeping its employee’s interest at such high priority, its attrition
rate is one of the highest in the coffee chain industry. One survey revealed that despite the
benefits given by the company, the employees do not feel like they are part of the
organisation’s mission and values.
Based on this caselet, on which of the following job attitude types should Coffereo aim to
focus?
Job satisfaction
✕ Incorrect
Feedback:
By providing real-time benefits to all its employees, Coffereo ensures that its employees are
satisfied and involved in their job whole-heartedly. However, it is failing to ensure that a
connection is built between the employees and the company, which is possible only by
making them part of the company’s larger vision and mission.
Job involvement
Organisational commitment
✓ Correct
Feedback:
Think about the measures taken by a company to ensure that its employees are satisfied and
involved in their work. They must also feel like they are part of the company’s bigger mission.
In this case, the employees do not feel so. Coffereo should communicate with and train its
employees such that they believe that coffee is not just a product but an emotion that
connects humans. Hence, its vision must ensure that the employees are committed to the
organisation. Such a deep connect between the employees and the company will be
reflected through its attrition rate.
OCEAN Framework
Sushant and Bhavya work as Accounts Executives at HSBC bank. They report to Raghav, who
is a Senior Accounts Manager at the same branch. Although they all get along fairly well as a
team, Bhavya, a shy employee does not openly share her views and ideas.
Sushant cannot understand why Bhavya does not express herself and remains quiet most of
the time. Bhavya identifies that Sushant is laid-back in times of crisis, dismissing issues almost
as soon as they are identified. Also, neither Sushant nor Bhavya can comprehend why Raghav
questions everything all the time.
Match the people with the following personality traits that they are exhibiting.
Name OCEAN Traits
1. Sushant a. Low on agreeableness
2. Bhavya b. Low on extraversion
3. Raghav c. Low on neuroticism
1-b, 2-c, 3-a
1-a, 2-b, 3-c
1-c, 2-b, 3-a
✓ Correct
Feedback:
 Sushant stays calm and stable even in times of crisis, as he experiences lower stress
levels, which is an indicator of a low score on the trait of neuroticism.
 Raghav tends to be openly sceptical of other people's claims, which indicates a low
score on agreeableness.
 Bhavya is an introvert and a shy person. She does not openly express herself even
when it is most required.
Had they known this about one another’s personalities, they would have been able to work
without frustration and disagreement.
1-b, 2-a, 3-c

Learning Theory
In a manufacturing unit, each time a top executive pays the plant a visit, the cleaners
would clean up the administrative offices and all the windows. This went on for years.
The employees would be on their best behaviour and be prim and proper each time
they found the windows cleaned, even when the cleaning was not because of a visit
from a top executive.
Which learning theory describes the association between window cleaning and the
employees being on their best behaviour?
Social learning
Operant conditioning
Classical conditioning
✓ Correct
Feedback:
Classical conditioning can be used to describe the learning in this case. The stimulus
(cleaning of windows) is associated with the visit of executives, and hence, the
employees would dress up properly and put on their best behaviour (reaction to
stimulus).
Learning Style
Kavita is a new program manager at a start-up. In one of her training sessions, she was
seen doing the following activities:
1. Taking detailed notes instead of participating in the discussions

2. Sitting closer to the presentation in order to see it clearly
3. Clicking pictures of all illustrations and models enthusiastically
4. She benefits from the flow diagrams and images shown in the presentations,
especially the ones in colour
5. Making summary slides that help her draw a mindmap of situations
6. Asking the following questions to herself while learning:
 What do I see clearly in this image?
 What message are the flow diagrams trying to convey?
Under which of the following types can Kavita be categorised based on her learning
style?
Kinesthetic learner
Visual learner
✓ Correct
Feedback:
A visual learner prefers to learn through visual communication. Kavita prefers to take
pictures, make detailed notes and summaries, all of which help her visualise the
content and learn faster.
Auditory learner
All of the above

Bias
A company based in Delhi is undergoing a radical organisational change, where new
leaders are being appointed at all top management positions. The former leaders
focussed on making profits using user-friendly approaches. However, the new leaders
are more focussed on customer-centricity. The employees collectively term the
behaviour of the new leaders as ineffective.
This is a typical organisational bias where before accepting any new changes, the
employees have decided to voice against it. Which bias is this referring to?
Stereotyping
✕ Incorrect
Feedback:
Think again! Here, two groups are being compared and a bias is formed. Which type
of bias has this characteristic?
Halo effect
Self-serving bias
Contrast effect
✓ Correct
Feedback:
The clear comparison between the former and new leaders to form a bias is a case of
the contrast effect. Here, the perception is not formed in isolation but by comparing
two groups.
Reinforcement Techniques
Suppose you are the production manager at BPCL, Mumbai. The HR department has
come up with a new policy that recommends the following: All underperforming
employees (falling below a certain KRA consistently for the past six months) in the
organisation will be put on probation of two months if they score a performance
rating below a certain level in this quarter too.
What form of reinforcement technique is this?
Punishment
Negative reinforcement
✓ Correct
Feedback:
There is a fine line between negative reinforcement and punishment. While

punishment refers to stopping an undesirable behaviour by imposing a penalty
without any warning, negative reinforcement refers to stopping undesirable behaviour
by associating a negative outcome, as a result of the undesirable behaviour. Here, a
warning is given to stop the undesirable behaviour of underperformance.
Extinction
All of the above

OCEAN Framework
Manish Malhotra is one of the best fashion designers in the country. He is sociable and
agreeable as seen from his presence in social gatherings and interactions with friends.
They seem to vouch for him, which indicates his ability to build deep relationships with
his friends. One of his best qualities is that he is open to new experiences and has
transformed his business through creative arts and techniques. Nevertheless, he is
rarely a part of controversies and does not get involved in distressing media situations.
Based on the characteristics mentioned above, which of the following statements

about Manish is true? (Note: The answer is entirely dependent on the traits described
above)
Manish scores low on extraversion
Manish scores high on neuroticism
Manish scores high on openness
✓ Correct
Feedback:
Manish is open to new experiences and has experimented and come up with several
new designs, which you must have seen on either social media or TV. His designs are
well-crafted and thought out, which reflects his openness to trying out new things in
his work.
Manish scores low on agreeableness

Learning Style
Sahil is a new senior associate at a start-up called ‘Xijee’. His initial training requires
him to complete a bootcamp course within two months of his joining. Sahil requests
his manager that he would like to apply a new concept in his project as and when he
learns about it in the bootcamp (training). He says that such an approach helps him
learn faster and retain the information for a longer period. Sahil’s manager agrees to
his request and Sahil completes his bootcamp and 50% of his project work within the
first two months of his joining. He gains tremendous praise for his efforts.
Under which of the following learner types can Sahil be categorised?
Kinesthetic learner
✓ Correct
Feedback:
A kinesthetic learner gains knowledge and learns primarily through practice. They like
to dive into a project by interacting with the subject matter and learning along the
process.
Visual learner
Auditory learner
None of the above

Bias
A few months after joining, Samar was shifted to a new project. Despite his best efforts
and hard work, his new manager, Niket, favoured Joseph, who had also joined the
team recently.
In one of the meetings, Niket ignored a major mistake made by Joseph but scolded
Samar for a minor miss. Samar quickly identified the bias in this situation. He knew that
both Niket and Joseph belonged to the same state and also shared a common hobby
of trekking. Samar was disappointed and disheartened.
Which form of bias, is in play, in this situation? (Note: Answer solely on the basis of your
learnings from this session)
Contrast effect
Self-serving bias
Halo effect
Stereotyping
✓ Correct
Feedback:
Niket favoured Joseph simply because they belonged to the same state and had a
common hobby. He perceived Joseph as belonging to the same group as him. This is
a case of stereotyping that is based on a few assumptions without having complete
knowledge of the person or the situation.
Organisational Teams
Match the following types of teams with their functions presented in the following
table:
Type of Team Function
1. Problem-solving a. Employees from similar hierarchies come together, and different

teams departments form a team.
2. Cross-functional b. Employees from different regions collaborate on electronic platforms such

teams as Skype, Zoom, e-mails, etc.
c. Employees from different departments come together to solve a business

3. Virtual teams
obstacle or issue.
1-a, 2-c, 3-b
1-b, 2-c, 3-a
1-c, 2-a, 3-b
✓ Correct
Feedback:
Problem-solving teams come together to solve a business problem and find effective
solutions for it.
Cross-functional teams are formed when employees from similar hierarchies and
different departments form a team.
Virtual teams, as the name suggests, are formed when employees connect and
collaborate online and do not meet in person.
1-b, 2-a, 3-c

Which of the following types of team represents the illustration given below in the
most apt way?
Self-managed team
Multi-team team
✓ Correct
Feedback:
Multi-team teams are formed when multiple teams come together to achieve a
common goal or objective.
Cross-functional team
Problem-solving team
Team Roles
Match the specific role types with their broad role types that are presented in the
table given below.
Broad Role Specific Role
1. Action-oriented roles a. Evaluating all options before making a decision
2. People-oriented roles b. Continuously challenging the team to improve
3. Thought-oriented roles c. Exploring opportunities and developing contacts
1-c, 2-a, 3-b
1-c, 2-b, 3-a
✕ Incorrect
Feedback:
Think again! Recollect the key functions of the different roles. Hint: Check if the
function involves an action, a team coordination activity or, simply, an individual task.
1-a, 2-c, 3-b
1-b, 2-c, 3-a
✓ Correct
Feedback:
Continuously challenging the team to improve is the key role of a shaper who belongs
to the category of action-oriented roles.
Exploring opportunities and developing contacts is the key role of a resource
investigator who belongs to the category of people-oriented roles.
Generating new ideas within a team is the key role of a monitor evaluator belonging
to the category of thought-oriented roles.
Soft and Hard tactics of Power
Name of the Tactic Definition
(1) Silent authority a. Influencing someone by using logical arguments
(2) Exchange b. Exchanging resources or benefits with the person to be influenced
(3) Persuasion c. Using legitimate power to influence team members
(4) Coalition d. Making groups and using the resources and powers of group members to influence others’
formation behaviours
1-b, 2-a, 3-d, 4-c
1-c, 2-b, 3-a, 4-d
✓ Correct
Feedback:
Silent authority is the use of legitimate power to influence team members, and hard
tactics used for power exertion involve exchanging resources or benefits with the
person to be influenced. Persuasion is the gentle art of influencing others using logical
arguments, whereas coalition formation involves making groups to influence an
individual.
1-a, 2-d, 3-c, 4-b
1-d, 2-c, 3-b, 4-a

Politics
Raman recently got promoted to the role of a Project Manager in Krafty, a digital marketing
company. Owing to the expansion of Krafty’s clients in the banking and finance domains,
Krafty’s CEO hired a new project manager, Jatin, specifically for the banking and finance
segment. He further decided that Jatin will work independently and will not report to Raman.
However, to have better control over the project team, Raman started influencing other
departmental heads against Jatin. Despite the CEO’s request, Raman did not share the
necessary information with Jatin that he needed to kick-start the project.
Raman started controlling the resources needed by Jatin. He started giving him various reasons
for non-availability of resources. Jatin understood that this was a case of politics by Raman.
Analyse this situation and look for how Raman supported politics in this situation. (Note: More
than one answer may be correct.)
Substitutability
✓ Correct
Feedback:
Raman did not share the necessary information with Jatin. This is a case of substitutability,
wherein Raman is saving the resources available and maintaining the status quo.
Organisational change
✕ Incorrect
Feedback:
Recollect the different conditions that support politics. Hint: Is this situation of politics that is
related directly to any change in the organisation?
Resource allocation
✓ Correct
Feedback:
Raman is also controlling the resources that are required by Jatin. He did not want to reveal
confidential information regarding clients and in-house departments. This is a condition of
resource allocation that supports office politics.
Type of Conflict
You are working as a sales manager for Chicago Pneumatic, one of the largest
industrial tools manufacturers. As a sales manager, you are responsible for handling
operations in the National Capital Region and its suburban areas, with a network of
seven distributors.
You face a situation in which two distributors get into a conflict over a key customer
in a common territory. The customer had placed an order for some tools from its
corporate office, which was in the area that was handled by Distributor A. However,
the customer’s factory to which the tools were to be delivered was in an area that was
handled by Distributor B.
Now, Distributor A felt that the order should go to them because it was placed from
the corporate office, whereas Distributor B felt that the order should be placed with
them because the factory was in their area, and hence, the customer would contact
them for the after-sales servicing of the tools as well.
Conflict owing to status
Conflict owing to personality
Conflict owing to resources
✓ Correct
Feedback:
This is an example of a conflict owing to resources, as there is an argument over

shared resources, that is, a common distributing area.
Conflict owing to goals

Match the following types of teams with their characteristics that are included in the
table given below.
Type of Team Characteristics

(1) Self-managed a. Senior managers from the IT, product, sales and customer service departments
teams have formed a team.
(2) Cross-functional
b. Generally, a manager or a supervisor is absent in this team.
teams
c. The sales, marketing and research teams come together to form a product
(3) Multi-team teams
marketing team.
1-a, 2-c, 3-b
✕ Incorrect
Feedback:
Think again! Recollect the functions of different teams. Hint: What does the term self-
managed imply?
1-b, 2-a, 3-c
✓ Correct
Feedback:
 Self-managed teams take the responsibility of executing a task
independently, without any supervision of a senior.
 Cross-functional teams are formed when employees from similar
hierarchies and different departments form a team.
 Multi-team teams are formed when many teams come together to
achieve a common goal or objective.
1-c, 2-a, 3-b
1-b, 2-c, 3-a

Which of the following types of team represents the following illustration (central
circle) in the most apt way (to be recreated)?
Self-managed team
Virtual team
Cross-functional team
✓ Correct
Feedback:
The central circle forms a cross-functional team which are formed when employees
from similar hierarchies and different departments form a team.
Problem-solving team
Team Roles
Karan, an entrepreneur who is building a new business, needs to have the courage to
drive his staff to overcome obstacles and achieve success. He also needs to calm
people down in stressful situations and help them to work together.
According to Belbin's theory, which of the following roles does Karan need to fulfil as
per the above-defined objectives?
Completer/finisher
Resource investigator
Plant
Team worker
✓ Correct
Feedback:
In order to drive his staff to overcome obstacles and achieve success along with
calming his team members down during stressful situations, Karan needs to fulfil the
role of an efficient team worker. Here, the objective is to keep the team moving
forward instead of completing an individual role.
Team Roles
Match the specific role types with their broad role types that are given in the
following table:
(1) Action-oriented roles a. Providing knowledge and skills that are otherwise in rare supply
(2) People-oriented roles b. Removing all errors and polishing a task
(3) Thought-oriented roles c. Helping in the coordination of the team and eliminating situations of conflicts
1-c, 2-a, 3-b
✕ Incorrect
Feedback:
Think again! Recollect the key functions of the different roles. Hint: Check if the function
involves an action, a team coordination activity or, simply, an individual task.
1-c, 2-b, 3-a
1-b, 2-c, 3-a
✓ Correct
Feedback:
Removing all the errors and polishing a task is the key role of a completer/finisher who
belongs to the category of action-oriented roles.
Helping in the coordination of the team and removing situations of conflicts is the key
role of a team worker who belongs to the category of people-oriented roles.
Providing knowledge and skills that are otherwise rarely provided, is the key role of a
specialist belonging to the category of thought-oriented roles.
Johari window
Reena is a program manager at a Delhi-based company. Now, as per the Johari
window results, which of the following statements is correct about Reena’s behaviour
during her first few weeks of joining the company?
Reena’s unknown area will be the smallest, as she is new to the team.
Reena’s hidden area will be the largest, as compared to other regions, as

she is new to the team, and the team members know very little about her
personality traits or behaviour.
✓ Correct
Feedback:
The hidden area is the region that indicates the personality traits of an individual that
are not known to others but known to them. Since Reena is new to the team, her
team members do not have complete knowledge of her personality traits.
Reena’s open area will be the largest, as she is new to the team and wants
everyone to know about her.
✕ Incorrect
Feedback:
Reena’s open area cannot be the largest because she is a new team member, and her
team members are not aware of her personality traits completely.
Johari window
Tania is a Director of the sales department at Bukish, an online Chennai-based edtech

company. Her Johari window after working at Bukish for five years is shown below.
Which of the following statements is correct with respect to her Johari window result? (Note:
More than one option may be correct.)
The open region is large because others know a lot about Tania’s personality traits, and she
knows about these traits as well.
Feedback:
The open area indicates the part of an individual’s personality that is known to the individual
and to others. Given that Tania has been part of the company for the past five years, through
continuous feedback and such processes, she has increased her open area. The small region
of the hidden area also shows that she does not keep any secrets from or have any hidden
agenda (related to work) with her team members
Through the processes of disclosure and receiving feedback, the open area has expanded,
and simultaneously, the sizes of the hidden and blind area have reduced.
✓ Correct
Feedback:
Since the open area is large, it shows that Tania is an introvert and likes to keep to herself at
the workplace.
✕ Incorrect
Feedback:
Hint: The open area indicates the part of an individual’s personality that is known to the
individual and to others. People with a large open area are typically extroverts and outgoing.
Tania does not have any hidden agendas or manipulative intentions, and this is reflected
through the small region of the hidden area.
Feedback:
Power
Ramesh works as a Chief Financial Officer in a mid-sized bank. One of the team
members, Tushar, working under Ramesh has performed exceptionally well in the last
quarter. Ramesh assured him that he will be promoted if he maintains this level of
performance in the next quarter as well. On hearing this, Tushar went on to become
the ‘Best performer of the quarter’.
Identify the base of power used by Ramesh to motivate his team members, which, in
this case, is Tushar.
Coercive power
Referent power
Expert power
Reward power
✓ Correct
Feedback:
Ramesh uses his capacity to assure his team member Tushar of a promotion, which is
a reward. Thus, he uses his reward power to motivate Tushar in this case.
Conflicts
Company X is one of the largest e-commerce companies in India. It has a warehouse
team, which is responsible for fulfilling customer orders from warehouses. The
team's work involves picking orders from the warehouse, packing them and
dispatching them to the customers’ addresses.
Individual A who is part of the warehouse team suggested that they should start
using non-plastic material and paper for packing orders, as these options are more
environment friendly. However, individual B who is also part of the team pointed out
that paper packaging is approximately three times costlier than plastic packaging
and can significantly affect the image of the company, and therefore, it should not be
used.
What is the type of conflict that is occurring between individual A and individual B?
Conflict owing to status
Conflict owing to personality
Conflict owing to resources
Conflict owing to goals
✓ Correct
Feedback:
This is an example of a conflict owing to goals. For individual A, environment

preservation is the primary goal, whereas for individual B, the primary goal is
reducing the cost.
Team Roles
Match the specific role types with their broad role types that are presented in the table
given below.
(1) Action-oriented roles a. Generating new ideas
(2) People-oriented roles b. Turning ideas into actions
(3) Thought-oriented roles c. Clarifying goals and delegating work effectively
1-b, 2-c, 3-a
✓ Correct
Feedback:
Turning ideas into actions is the key role of an implementer who belongs to the
category of action-oriented roles. Clarifying goals and delegating work effectively is
the key role of a coordinator who belongs to the category of people-oriented roles.
Generating new ideas within a team is the key role of a plant belonging to the category
of thought-oriented roles.
1-c, 2-b, 3-a
1-a, 2-c, 3-b
1-c, 2-a, 3-b

Johari Window
Match the following quadrants of the Johari window with their characteristics given
in the following table:
Quadrant Name Characteristic

a. It indicates the part of an individual’s attitude and personality that only are known
(1) Open area
to him and not to others.
b. It indicates the part of an individual’s personality that is neither known to him nor
(2) Blind spot
to others.
(3) Hidden area or c. It indicates the part of an individual’s personality that is known to the individual
facade and to others.
d. It consists of personality traits or angularities of an individual’s personality that are
(4) Unknown area
unknown to him/her but known to others.
1-b, 2-a, 3-d, 4-c
1-a, 2-c, 3-d, 4-b
1-c, 2-b, 3-d, 4-a
1-c, 2-d, 3-a, 4-b
✓ Correct
Feedback:
 The hidden area or facade indicates the part of an individual’s attitude
and personality that are only known to him and not to others.
 The unknown area indicates the part of an individual’s personality that is
neither known to him nor to others.
 The open area indicates the part of an individual’s personality that is
known to the individual as well as to others.
 The blind spot consists of personality traits or angularities of an
individual’s personality that are unknown to him or her but known to
others.
Power
Swapnil is an executive assistant to the CEO of an FMCG company. The management
wanted to review the sales process, and so, they asked Swapnil to lead a cross-
functional team of experts to review and suggest changes in the process. After taking
the lead, Swapnil immediately distributed all the work to the team members and gave
them a short deadline. The team members tried to discuss the issues related to
timelines and work allocation with Swapnil, but he ignored them and threatened to
write an email about their non-cooperation to the management.
Which of the following types of power did Swapnil use in his leadership style?
Coercive power
✓ Correct
Feedback:
Being close to the CEO gives Swapnil the power to threaten the team members; the
fear of dismissal from the CEO forced them to follow Swapnil’s orders. Hence, by
threatening his team members, Swapnil is using coercive power.
Referent power
Expert power
Informative power
Organisational Structures
Which of the following statements about the divisional structure are true? (Note: More than one
options may be correct.)
The divisional structure organizes the activities of a business around geography, product and service
groups
✓ Correct
Feedback:
The divisional structure is a type of organizational structure that groups each organizational function
into a division. These divisions can correspond to either products or geographies where the failure of
one division may not directly threaten or impact the other division
Each division contains all the necessary resources and functions within it to support that product line or
geography (for example, its own finance, IT, and marketing departments)
Each division in the structure has its own set of functions which means each division will handle its
own sales and marketing, accounts, production etc that support the division within a geography
It is used commonly because it is low-cost and involves less operations
✕ Incorrect
Feedback:
Think about it. If a company has to maintain multiple divisions, it must allocate sufficient resources to
all of them. This in itself is a costly process. Every division will function with its own set of functioning
departments and this involves a great deal of operational efficiency
The failure of one division may not directly threaten or impact the other division
✓ Correct
Feedback:
The divisional structure is a type of organizational structure that groups each organizational function
into a division. These divisions can correspond to either products or geographies where the failure of
one division may not directly threaten or impact the other division
Each division contains all the necessary resources and functions within it to support that product line or
geography (for example, its own finance, IT, and marketing departments)
Match the following organisational structures to their characteristic
Structure Characteristic
(1) Functional a. Reporting to multiple managers
(2) Divisional b. A company has multiple marketing departments, each assigned to a specific division
(3) Matrix c. Organisations spread across the geography come together to create the final product
(4) Team-based d. Driven by employees revolving around a particular function
(5) Network e. One reporting but multiple roles to play at the same time
1-d, 2-b, 3-a, 4-e, 5-c
✓ Correct
Feedback:
The functional structure involves employees around a specific function.

The divisional structure has employees divided into divisions, each of which have specific
functions or departments under them
The matrix structure has dual or multiple reporting
Team-based structures are flat and flexible. Each employee even though has single reporting
but may have multiple roles to play
The network structure is also flat in nature. It's decentralised and involved groups or different
units of the same organisation coming together to produce a product
1-e, 2-c, 3-a, 4-b, 5-d
1-e, 2-a, 3-c, 4-b, 5-d
1-e, 2-b, 3-a, 4-c, 5-d
✕ Incorrect
Feedback:
Hint: Do the employees in functional structure have a single or multiple roles to play?
Elements of Organisational Structures
After raising funds for operations in Blendo, an e-commerce startup, Ramesh, the founder’s
responsibilities would increase as he intends to scale up his start-up. One of the key areas that require
attention on a daily basis is logistics.
From warehouse management to keep a constant check on inventory, logistics is a key function.
Expanding operations into Tier-2 cities would require the company to continue fulfilling its promise of
on-time delivery. This, in itself, shall require dedicated centres and recruitment of delivery personnel. It
will not be possible for Ramesh to keep a tab on the above-mentioned range of activities.
How can Ramesh strategise the elements of organisational structure to ensure that logistics, as a
function, does not suffer delays or other hindrances in such a scenario? (Note: More than one option
may be correct.)
High degree of departmentalisation
✓ Correct
Feedback:
Within the e-commerce ecosystem, a ramped up logistics department with an enhanced talent pool of
requisite personnel should be demarcated. It should have a well-defined chain of command to ensure
they continue to work productively.
Wider span of control
✓ Correct
Feedback:
Ramesh and other C-suite-level executives should endorse a wider span of control to key personnel in
logistics who, they believe, can be trusted. Especially with plans to expand into Tier-2 cities, granting a
wider span of control to front-level employees can go a long way in ensuring on-time delivery, which is
a USP of the organisation.
Low degree of decentralisation
Low degree of formalisation
✓ Correct
Feedback:
Ramesh should refrain from formalisation as it might curb learning, which is essential during the early
stages of expansion. Also, work efficiency might be affected. As the company will experience many firsts,
such as acquisitions of warehouses and delivery culture in Tier-2 cities, they cannot abide by pre-existing
procedures that might curb autonomy and the learning cycle.
Glow, a US-based marquee fashion brand, has the following three product lines:
(a) Clothing
(b) Footwear
(c) Jewellery
While the company had been thriving in its domestic space, the USA, the market had been saturated
for quite some time. On one of his tours to India, Stuart, the Chief Marketing Officer of Glow, saw
encouraging signs to extend their clothing line in the country without establishing a business unit. Stuart
decided to set up only the sales department of Glow in India. With proven brand affinity among Indians,
this move made sense.
However, to deal with challenges such as high admin costs, less flexibility within the Indian and US teams
and slow decision-making due to centralisation would mean that a dedicated structural change would
be needed for its venture in India.
What type of structure would work best for Glow?
Network Structure
Team-based Structure
✓ Correct
Feedback:
Since Stuart is facing issues of low flexibility and high admin costs, a team-based structure is the most
suitable. If Stuart wants to ensure that India, as a market, is not just explored but is also captured, then
identifying someone who is acclimated to the Indian market and can co-share the duties of a functional
head should be the correct next step. This would also aid in quick decision-making.
Matrix Structure
✕ Incorrect
Feedback:For the initial extension of the product line to India, a matrix structure would create a lot of
confusion. Identifying someone who is acclimated to the Indian market and can co-share the duties of
a functional head should be the correct next step. This would also aid in quick decision-making.
Functional Structure
Organisational Elements
Sphere, a digital transformation consulting organisation, was hired by Maestro, an electric vehicle
giant, to facilitate digitalisation across the organisation. While Maestro had automated its
manufacturing function, its sales arm was still lagging behind a bit, as sales were mostly generated
through conventional channels.
One of the major problems with the existing website was the cluttered ‘User Interface’. Another
bottleneck was for the consumers aged between 25 and 40 years who were impatient, thereby costing
Maestro its potential sales. Also, while cryptocurrency is now a mainstream payment method, the
company has so far been hesitant to use it as a payment option. Given that the majority of its car
buyers are tech-savvy, the survey results highlighted this issue as well.
Despite evidence favouring digitisation of the sales function as a viable solution, certain board
members showed resistance to the idea, as they believed that an overhaul might put their current
market position in jeopardy.
Which of the following facets of the organisational structure should be promoted by Sphere in order
to facilitate these changes? (Note: More than one option may be correct.)
Departmentalisation
Feedback:
Maestro’s sales function would need to be fragmented into smaller units, wherein conventional sales
channels and digital sales channels would need to function autonomously.
Formalisation
Centralisation
✕ Incorrect
Feedback:Promoting centralisation would hamper the autonomy of a dedicated tech team, which, via
working on the identified bottlenecks, can propel sales.
Span of control
✓ Correct
Feedback:
In order to work on the suggested changes, it is imperative for each employee to have a sense of
ownership of their work, which further contributes to their efficiency. Also, without having to report
every minute aspect to the supervisor, decision-making can be made less cumbersome.
Organisational mission, vision and values
Which one of the following statements about an organisation’s mission statement is
true? (Answer this based on your learnings from the segment)
It conveys all the details of the stakeholders
It lays down the reasons for the existence of an organisation
✓ Correct
Feedback:
The mission statement of an organisation gives a clear idea of why an organisation

exists. What is its purpose and hence what mission does it see itself being a part of.
It is an operationalised statement that talks about the future of the

organisation
It is also known as the purpose statement

Role of manager in building a culture
Which of the following steps would be a part of a manager providing a protective mechanism to build
organisational culture? (Note: More than one option may be correct)
Protecting certain traditions that are being followed in the organisation since its establishment
Feedback:
One of the most effective ways used by managers is to provide protective mechanisms to traditions that
have been followed in the organisation as it helps maintain the culture.
Respecting traditions and ensuring that they withheld in all circumstances
✓ Correct
Feedback:
have been followed in the organisation as it helps maintain the culture.
Protecting employees by ensuring job security
✕ Incorrect
Feedback:
Hint: Protective mechanisms to build organisational culture involves the manager protect the culture of
the organisation
A certain organisation awards employees each year who go out of the way to help others in the
organisation
✓ Correct
Feedback:
have been followed in the organisation as it helps maintain the culture
Rohit heads a boutique consulting firm named ACE Consultants and has recently
landed a client who is looking to identify bottlenecks to efficiency in its organisation.
The client, Amora, which is a Greece-based sportswear brand, has been a household
name in the European market. However, over the past couple of years, there have
been a number of product recalls, which is, in turn, hurting its sales and reputation.
While analysing the existing structure and after interviewing key personnel, Rohit and
his firm happened to notice that the marketing officer is always in disagreement with
the designing chief. They give more emphasis to their own subunits rather than the
organisational goals and so, there are frequent dysfunctional conflicts.
On the basis of these flaws, Identify the organisational structure that is being
followed at Amora.
Network Structure
Divisional Structure
Matrix Structure
Functional Structure
✓ Correct
Feedback:
The conflict between the marketing head and the designing chief is stemming from
the fact that they give more emphasis to their subunits rather than the organisational
goals. The conflicts are, thus, arising due to poor coordination between the marketing
and the design team. This concludes that Amora is following a functional structure.
Organisational Mission, Vision and Values
Match the following statement type to its function (Answer this based on your
learnings from the segment)
Statement Type Function
(1) Organisational
a. Operationalised statements that signify the future goals of an organisation
Mission
b. Operating principles that govern the behaviour of employees and the organisational
(2) Organisational Vision
culture
(3) Organisational Values c. Statements that lay down the purpose of existence of an organisation
1-a, 2-c, 3-b
1-c, 2-b, 3-a
1-b, 2-c, 3-a
1-c, 2-a, 3-b
✓ Correct
Feedback:
The mission statement of an organisation gives a clear idea of why an organisation

exists. What is its purpose and hence what mission does it see itself being a part of. An
operationalised statement that talks about the future of the organisation is called its
vision statement. This is one key difference between the mission and vision statement.
Organisational values are operating principles that guide individual behaviour and the
method of achieving the organisational mission.
Organisational Cultures
According to Hofstede's cultural theory, which of the following dimensions deals with
determining the distance between the person of the highest authority or in command
and the other employees of the organisation.
Masculinity vs femininity
Uncertainty avoidance
Individualism vs Collectivism
Power distance
✓ Correct
Feedback:
Power distance is the belief about the appropriate distribution of power within an
organisation. It essentially means that there is a distance between the person in
command and everybody else. There's a certain distance and power is centrally
controlled.
Module 2 : HR for Non-HR Managers
Manpower Planning
Managing manpower
Suppose you are working as a project manager at L&T, a construction company, focusing on
government projects. You manage all the projects in Mumbai started by the Maharashtra
Government.
Initially, the time allocated for one of the projects was one year. However, the management has
suddenly given a tight deadline and asked to finish the project within nine months.
As a project manager, how would you manage your manpower? (Note: More than one option may be
correct.)
I would hire more people and would ask for approval from the management for the same.
✓ Correct
Feedback:
Hiring more manpower would help you direct resources to the project, thereby enabling L&T to finish
the project in time.
I will not take any action.
I will switch manpower from another project to this project if there is leeway in the other project.
✓ Correct
Feedback:
Additional resources would enable L&T to finish the project on time.
I will ask current employees if they wish to earn extra through overtime.
✓ Correct
Feedback:
Increasing work time may finish the project on time but check all the labour laws before
implementing such change.
Manpower Planning Process
Rearrange the following steps involved in the manpower planning process in the
correct order.
1. Audit the existing resources.

2. Acknowledge the business objectives.
3. Forecast the optimum number of resources required.
1-2-3
3-2-1
2-3-1
2-1-3
✓ Correct
Feedback:
A proper manpower planning starts with acknowledging the business objectives.

Thereafter, you audit the resources and finally forecast the optimum number of
resources.
Competency Matrix
Suppose you are working as the senior research analyst at an investment bank. You
have been asked to hire five candidates for the role of an associate research analyst
from one of the top B-schools in India. The role involves working on hard deadlines
and for extensive work hours, dealing with multiple pages of data, speaking and
presenting ideas on a regular basis, and dealing with financial instruments. What would
be the three most important skill sets that you would like to include in your
competency matrix for this role? (Note: More than one option may be correct.)
Communication skills
✓ Correct
Feedback:
Based on the work-life of an associate research analyst, it is quite evident that the
senior research analyst would look out for competencies such as great communication
skills, high analytical skill and an extensive amount of product knowledge to quickly
understand and interpret data.
Analytical skills
✓ Correct
Feedback:
Sales and negotiation skills
Product knowledge skills
✓ Correct
Feedback:
Competency Matrix
Suppose you have opened a new retail electronic appliance showroom in Kanpur,
Uttar Pradesh. It will stock all the major white goods, such as refrigerators,
televisions, microwaves and air conditioners. In order to get the business started, you
need 10 salespeople, and one sales manager who will directly report to you. Which of
the following competencies will you look for in both the job profiles?
Suggested Answer
Salesman: You can test the candidate on their adaptability to handle differences in
opinions, their persuasion skills, their knowledge of products and their previous work
experience.
Sales Manager: The profile would demand the ability to set up the right incentive
structure for the sales team and the ability to motivate and empower the team to
achieve higher sales targets.
Job Description and Job Specification
An accounting firm has put out the following advertisement looking to hire a candidate
for the role of an Account Officer:
I. We are looking for a detail-oriented Account Officer to assist in our financial

department. The responsibilities of the Account Officer include keeping financial records
up-to-date, checking for inaccuracies in invoices, and handling queries.
II. To be successful as an Account Officer, you should have knowledge of basic accounting
procedures, be open to learning, and have strong communication skills. Ultimately, a
successful Account Officer should be able to provide excellent customer service and
maintain accurate financial records.
Which of the following is being shared in this advertisement?
I - Job description
II - Job specification
✓ Correct
Feedback:
You are correct! A job description is a list of what the job entails and a job
specification outlines specific traits that a person needs to do the job.
I - Job specification
II - Job description
Both I and II come under job description
Both I and II come under job specification

Methods of Job Analysis
Match the following job analysis methods with their correct explanation.
Job Analysis
Explanation
Method
A. Task Inventory 1. Identifying the important incidents that distinguish satisfactory workers from
unsatisfactory workers
B. Observation 2. Identifying the information or list of activities required to be performed in the job. This
includes how, why and when the worker does the job
C. Interviews 3. Observing and recording the activities or tasks of workers
D. Critical 4. Interviewing workers doing similar jobs or the supervisor in whose team the worker needs
Incidents to be recruited
A-2, B-3, C-4, D-1
✓ Correct
Feedback:
You are correct! Task inventory involves identifying a list of activities required to be
performed in the job, e.g., housekeeping. Observation involves observing and
recording the activities or tasks of workers, e.g., assembly line workers. In interviews,
workers in similar jobs or supervisors are interviewed, e.g., interviewing sales
managers for the job analysis of sales executives. The critical incidents method is
used to identify the important incidents that distinguish satisfactory workers from
unsatisfactory workers, e.g., a satisfactory worker took an extra 60-minute break on a
busy workday.
A-2, B-3, C-1, D-4
A-2, B-4, C-3, D-1
A-1, B-3, C-4, D-2

Types of Resume Screening
A software company has a vacancy for a Software Engineer. Since the company works
on many US-based IT projects, the software engineer will be required to travel to the
US for project implementations. The company does not want to sponsor the visa of
the employee and hence is looking for candidates with an active US visa. The
company has invited applications for the job via its website. Which type of initial
screening would company prefer to screen the applications?
Binary screening
✓ Correct
Feedback:
You are correct! In binary screening, you just need to check whether the candidate
meets the required criteria or not. In this question, the company only wants to
interview candidates who have an active US visa, and hence, binary screening can be
used to screen applications.
Subjective screening
IQ Test
Types of Pre-Employment Test
HDFC Bank is looking to hire a sales manager for one of their Business Loans products.
In addition to banking knowledge, the sales manager should have a basic knowledge
of manufacturing business processes as they are the primary customer segment. The
manager should also be able to handle situations in which clients compare the low
interest rates of other banks’ loan products with those of HDFC’s loan products.
Which of the following types of pre-employment tests can be used to screen

candidates for interviews? (Note: More than one option may be correct.)
Intelligence tests
Specific cognitive tests
✓ Correct
Feedback:
You are correct! Specific cognitive tests, often called aptitude tests, are used to
measure the candidate’s aptitude for the job in question. In this case, the bank may
ask questions regarding general banking knowledge and manufacturing business
processes.
Motor and physical abilities tests
Situational judgement tests
✓ Correct
Feedback:
You are correct! Situational judgment tests assess an applicant’s judgment regarding
a certain situation. In this case, the bank would want to ask questions on how the
applicant would respond if the clients compare the low interest rates of other banks’
loan products with those of HDFC’s loan products?
Role of Line Managers in Conducting the Interview
Suppose you have recently joined a consulting firm as a team lead. You want to expand
your team by hiring a few team members. Which of the following points should you
keep in mind for the interview process? (Note: More than one option may be correct.)
Prepare situational or job-related questions in advance of the interview.
✓ Correct
Feedback:
You are correct! It is advised to prepare for the interview process in advance to ensure
that the important aspects of the interview are not missed. This approach also ensures
consistency and fairness because all interviewees will be given an equal opportunity
to sell their skills and abilities.
Sell the job to the candidate.
✓ Correct
Feedback:
You are correct! The candidate is also making a decision during the interview process.
If you do not present the position (or yourself) in a positive light, then the candidate
might decide to keep looking for a job.
Avoid taking notes during the interview process.
Once the interview is done, arrive at a decision immediately.

Objectives of Employee Orientation and Onboarding
Employee orientation or onboarding is done to provide new employees with the
basic background information they need to do their job. Which of the following
should be accomplished through the employee orientation process? (Note: More
than one option may be correct.)
The employees should feel welcomed and start considering themselves as

part of the team.
✓ Correct
Feedback:
Correct! One of the primary purposes of employee orientation is to make an
employee feel welcomed.
The employees should have access to basic information to do their job such
as e-mail access and policies.
✓ Correct
Feedback:
Correct! One of the primary purposes of employee orientation is to get an employee
equipped with the necessary know-how for the assigned role.
The employee should understand the organisation vision, mission, culture

and future strategies.
✓ Correct
Feedback:
Correct! One of the primary purposes of employee orientation is to get an employee
integrated into the team culturally.
The employee should be informed of the details of their salary.

Hiring Strategy
Which of the following business processes would be the first step to an effective hiring
strategy?
Hiring the right resources for specific roles
Upskilling employees
Motivating employees
Ascertaining the total number of employees to be hired
✓ Correct
Feedback:
You are correct! Determining the exact number of employees to be hired is a
manpower planning step performed as the first step in the hiring process.
Graded Assessments:
Manpower Planning
Suppose you are managing a sales force of 30 people. You need to sell banking
products, and you want to determine how many area managers you need for this. You
have been asked to increase the headcount. Which of the following come under the
process of manpower planning?
Analysing the existing resources
✓ Correct
Feedback:
This is one of the major activities associated with manpower planning. One needs to
properly analyse the existing manpower and then proceed to the next step.
Conducting job analysis
Hiring candidates
Liaising with other departments

Competency Matrix
Suppose you are a general manager of a private bank. You want to recruit a new
operations manager who will oversee all banking transactions done by customers
every day and ensure that all the processes are being executed properly by the service
officers.
Choose the competency which is most relevant for the branch operations manager
role based on the above information.
Ability to listen to banking customers
Ability to quickly understand where the delay or problem is arising in the

entire operational process
✓ Correct
Feedback:
As per the given information, this is one of the fundamental duties of the operations
manager. The operations manager needs to ensure that all the processes are running
smoothly; hence, their score on the ability to understand the overall process should
definitely be high.
Ability to individually execute multiple tasks and issues
Ability to develop cordial relationships with the community and other

businesses
Pre-employment tests
In an interview, the interviewer gave you the following situation:
You manage the customer service department of a company. You have a team of 10
people. The company business is at its peak period and the members in your
department have already started to feel the pressure. Their morale is dropping and the
errors are increasing. The team members are openly questioning what is expected of
them and are confused about the overall objective. What actions should you take in
this situation as a manager to reduce errors and increase the morale of the employees?
Based on the aforementioned problem, which type of pre-employment test is this?
Special cognitive test
Intelligence test
Situational judgement test
✓ Correct
Feedback:
You are right! A situation judgement test assesses an applicant’s judgment regarding
a certain situation. Here, the interviewer is trying to determine what action the
interviewee may choose to take in a situation where employee morale is very low and
is affecting the business.
Motor or physical ability test

Performance Management System
What are the advantages of an effective performance management system? (Note:
More than one option may be correct.)
Assesses the strengths and weaknesses of employees
✓ Correct
Feedback:
Performance Management helps managers to understand employee weaknesses and
strengths based on which the manager develops the training and development
programs.
Helps in designing training programmes for employees
✓ Correct
Feedback:
Performance management helps managers to understand employee’s strengths and
weaknesses based on which he/she develops the training and development
programs.
Recognises the contributions made by each employee in the organisation
✓ Correct
Feedback:
Performance management helps managers link individual goals to organisational
objectives.
Finds suitable employees for a vacancy

SMART Criteria
Facing tough competition from ITC’s Mom’s Magic cookies, Britannia decides to launch
a new brand of premium cookies under the brand ‘Good Day Select’. The marketing
head gives the following goal to the brand manager with respect to the launch:
"The Good Day Select launch is one of the most important launches of this year for the
company. Now that the product is ready, we need to finalise the marketing mix. You
should get in touch with the creative agency, finalise the communication and sit with
the manufacturing party to understand the costing. Also, brief the sales team; we
would need to hit at least ₹20 crores in sales."
The brand manager understands that the goal is realistic, but it is missing one of the
SMART elements. Which of the following elements is the goal missing?
Specific
Measurable
Achievable
Relevant
Time-bound
✓ Correct
Feedback:
In the entire comprehension, it is nowhere mentioned that ₹20 crore of sales needs to
be generated within a specific time period. Hence, as per the SMART criteria, Britannia
needs to revise its goal and state ‘‘Achieve at least ₹20 crores of sales within six
months’’.
Goal Setting
Suppose you are the sales head at a newly established herbal tea company looking to
launch its product in a matured market like Mumbai. There are four major players in
the market with approximately 90% of combined market share among them.
Considering the market and the SMART criteria, which of the following would be the
most appropriate goal that you should be looking to achieve?
Acquire 25% market share in the first month of operation.
Acquire 5% market share in the first year of operation.
✓ Correct
Feedback:
Given the type of market you are entering and considering the fact that you are a
new player in the market, a healthy target of achieving at least 5% of the market
share in the first year seems relevant, specific, time-bound, achievable and
measurable.
Acquire as much market share as you can in the first year.

Goal Setting
Suppose you are a project manager at Adlabs Associates. You have recruited a few
team members and need to set up an effective process to evaluate their individual
performances. Which of the following is the key aspect that you should consider
while setting up this process? (Note: More than one option may be correct.)
You need to define the key result areas of individuals, which are linked to
the overall business goals of the company.
✓ Correct
Feedback:
You are correct! Defining the key result area is one of the aspects of setting up an
effective process to evaluate employee performance.
You need to analyse the performance of individuals through different

performance appraisal methods.
✓ Correct
Feedback:
You are correct! Analysing the performance appraisal methods is one of the aspects
of setting up an effective process to evaluate employee performance.
You need to understand the process of training and developing individuals

in order to improve the analysed performance of the individuals and the
team as a whole.
✓ Correct
Feedback:
You are correct! Understanding the training and development needs of the
employees is one of the aspects of setting up an effective process to evaluate
employee performance.
You need to develop job description and job specification for recruiting
new team members.
Goal Setting
What does the acronym SMART stand for?
Suitable, measurable, actionable, rewarded and timely
Specific, measurable, actionable, resourced and timely
Standardised, measurable, achievable, rewarded, and timely
Specific, measurable, achievable, relevant and time-bound
✓ Correct
Feedback:
Correct! Managers should follow SMART criteria while setting goals for employees.
The goal must be specific, measurable, achievable, relevant and time-bound.
Performance Appraisal Method
Hema, a senior associate at KPMG, wants to evaluate five associates who report to her. She
has thought of three performance appraisal methods. Match the following activities with the
appropriate type of performance appraisal methods.
 Hema evaluates her associates on a regular basis and keeps a log of key interventions and
actions for them.
 Hema keeps track of how each associate has fared on problem-solving, creativity and time
management.
 Hema gets in touch with her clients to understand which of her associates is better at
troubleshooting customer issues.
Critical Incident Method - 1

360 Degree Feedback - 2
Rating Scales - 3

Rating Scales - 3

Rating Scales - 1

360-Degree Feedback - 3
Ratings Scale - 2
✓ Correct
Feedback:
If a manager wants to keep track of important events, then they should use the critical
incident method.
If they want to check an individual’s competency, then they should use the rating scales
method.
Finally, if they want to take feedback from their peers, then they should use the 360-
degree feedback method.
360-Degree Feedback
Suppose you are the marketing head of a beverage company, and you want to assess
one of your subordinates using the 360-degree performance feedback approach. The
subordinate is a creative person and designs ads for different marketing projects.
Whom should you approach for the right feedback? Select the most appropriate
options from below. (Note: More than one option may be correct.)
Head to the Finance department to know about his campaign budgeting

skills.
✕ Incorrect
Feedback:
The subordinate does not do budgeting for campaigns; hence, consulting the
Finance people for feedback about this subordinate will not be helpful.
Ask his peers about his contributions to a particular project.
✓ Correct
Feedback:
You must definitely ask his peers about his contribution to the projects he has
worked on. You should also approach advertising agencies to check how his ad
creatives are doing and how the market is responding to them. Additionally, you
should also involve the senior management folks who approve his ad creatives
based on his ability to connect with the target audience.
Approach the advertising agencies to check the response rate of his ad

creatives.
✓ Correct
Feedback:
Ask the senior management to know about his ability to connect with the
target audience.
✓ Correct
Feedback:
Dimensions of Employee Engagement
During a series of HR interviews conducted by a company after the completion of a
review cycle, a lot of employees were overall happy with their team’s culture and felt
enthusiastic about their performance. However, they said that their managers were
less approachable sometimes. Based on this feedback, the team decided to review
their engagement strategy. Which of the following aspects of the engagement
strategy is lacking in this case?
Physical
Cognitive
✕ Incorrect
Feedback:
Think again! This relates to awareness among employees about the company's vision
and strategies, and what level of performance they need to deliver in order to
contribute towards organisational goals.
Emotional
✓ Correct
Feedback:
You are correct! This is based on the emotional relationship that employees have with
their employer. The managers should be approachable for employees to feel
connected.
Shortcomings of Engagement Strategies
Microsoft recently experimented with a 4-day work week in Japan.
What are some of the cultural and logistical differences that do not support the
implementation of such strategies in small Indian startups with less than 500
employees?
Suggested Answer
Microsoft is one of the largest companies with enough bandwidth to test-run such
strategies. Moreover, Japan has a much more disciplined culture with a high
emphasis on structured and timely work.
However such a strategy might not work in a small startup with short-term goals
where the employees do not have robust backups and contingencies in case of any
unexpected circumstances. The Indian workforce is also more attuned to
unstructured and last minute work, which may not be possible in a 4-day work week.
Long Term Rewards
Long-term reward programs are designed to retain and develop performing
employees in an organisation.
Match the following long-term rewards with their objectives.
Long-Term Reward Primary Objective of the Long-Term Reward

a. To help in 360-degree development of an employee by
1. Employee Stock Options taking on projects supported by a cross-functional team to
become a company leader in future
2. Career Progression
b. To help an employee develop skills, knowledge and ability
Goals
3. Corporate c. To help achievers to take on bigger assignments and develop

Entrepreneurship Programs them for bigger assignments in the future
4. Executive Education d. To help employees have a direct stake in overall

Sponsorship Programs organisational performance
1-d, 2-c, 3-a, 4-b
✓ Correct
Feedback:
Correct! Employee stock options give a lot of liberty to employees to earn over an
extremely long period. They feel a sense of stake in the company’s long-term
performance.
Career progression goals have led people to take up bigger assignments and, at the
same time, made them feel contented with the kind of organisation they are working
at.
A corporate entrepreneurship program is one of the core strategic programs where

employees are given products/strategic projects that could be supported by a cross-
functional team directly reporting to them. This helps in developing a person to
become a business leader in the future.
Executive education sponsorship programs help employees develop skill, knowledge
and ability. They also help people to stick around in the organisation for long
because the benefit offered by these programs is generally linked to employees’
career paths and their time in the organisation.
1-b, 2-c, 3-a, 4-d
1-d, 2-c, 3-b, 4-a
1-c, 2-d, 3-a, 4-b

Short Term Rewards
Short-term rewards refer to the awards given in a short frame of time. These rewards
are typically tied to contributions that have the greatest impact on company
performance and are used to inspire goal achievement. Which of the following are
short-term rewards? (Note: More than one option may be correct.)
On-the-spot recognitions
✓ Correct
Feedback:
Correct! On-the-spot recognition could be small gifts, a token of appreciation, etc.,
that are given from time to time so that people know that they have done a good
job.
Annual awards
✓ Correct
Feedback:
Correct! Annual awards not only have monetary value but also create a sense of
pride when one overachieves on the goal that is set for the year.
MICE (Meetings, Incentives, Conventions and Exhibitions) or ‘paid holidays’
✓ Correct
Feedback:
Correct! With MICE programs, a company provides its employees with a chance to
win a fully paid holiday from the organisation based on their current performance.
Employee Stock Options

Training Process
As a manager, after analysing the performance of your team, you need to build a
complete training module for them. Rearrange the following steps of designing a
training module in the correct order.
1. Choose the best training evaluation method.

2. Identify the training areas that will create the maximum business impact.
3. Collate the missing skill sets of your team members.
4. Formulate the manner in which the training would be conducted.
4-3-2-1
3-4-2-1
2-3-4-1
✓ Correct
Feedback:
This is certainly the correct order of steps of building a training programme for your
team. You first start with identifying the training ideas that will create maximum
business impact. Thereafter, you assess and collate the skill set that is missing within
your team members. Next, you formulate the manner in which the training would be
conducted, and finally, you design a framework to judge the effectiveness of training
conducted.
2-4-3-1
Performance Appraisal Method Identification
Which of the following is the best situation for implementing a rating scale?
You want to evaluate your staff on a regular basis and keep a log of critical
incidents such as handling an irate customer or sub-managing a team.
You want to evaluate the customers’ reaction towards your staff.
You want to ensure that the firm is protected from any employee
discrimination lawsuits, so you have conducted a job analysis.
You want a quantitative rating of each employee based on the competencies

that are important to the firm, such as selling skills.
✓ Correct
Feedback:
This is the right reason for you to use the rating scale, wherein you can provide a
quantitative rating to the competencies mentioned in the competency matrix.
Training Evaluation
Shreya is a training expert in ‘consumer behaviour’. She conducts training
programmes for various FMCG organisations worldwide. Through this type of
training, firms understand how to analyse consumer behaviour in a better way. She
takes a note about how happy and cheerful the audience is while asking questions
and responding to her questions. She conducts role-play activities and other
assessments to gauge whether they have really understood the topics that she has
covered. After conducting the training successfully, she presents positive results to
the management of the organisations.
Based on the text above, what, do you think, Shreya missed out on as per the
Kirkpatrick Evaluation Model?
Reaction
Lernen
Behaviour
✓ Correct
Feedback:
Shreya missed out on the behavioural aspect of the model. This step would have
helped her evaluate whether the trainees are able to actually execute what they have
learnt in the training. She should check whether or not the trainees are behaving as
per the training conducted while interacting with real customers.
Impact
Graded assessment:
Goal-Setting
What could be the most appropriate sales-focused goal for your staff, given your
objective? Select an option keeping in mind the SMART framework.
Sell a minumum quantity of any one of the snacks (such as cookies) within
this quarter.
Sell a minimum number of combo meals (for example, 'sandwich and chai'
or 'burger and shake') within this quarter.
✓ Correct
Feedback:
This goal goes perfectly with the business management objective of increasing sales.
This will foster more sales of a wider range of products due to product bundling and
will also help the store cash in on higher-margin products.
Sell newly launched products, thereby boosting their adoption.
Sell a minimum quanitity of tea within this quarter.

Performance Appraisal Method
You conducted the performance appraisal of the staff at Chaayos. You collected the
feedback related to the staff from customers, online food delivery boys of Swiggy and
Zomato, and from other employees at Chaayos. After this, you collated all the data to
give them a single qualitative review.
Which of the performance appraisal method did you apply?
Critical incidents method
Rating scale
Management by Objective
360-degree feedback
✓ Correct
Feedback:
You are right! In 360-degree feedback, the manager collects the performance data
from a number of stakeholders with whom employees work such as their immediate
supervisor, team members, customers and peers.
Performance Appraisal
Post the performance appraisal, it was found that three out of the seven staff members
have not been performing well in terms of product preparation. They were taking a
long time to deliver food to in-store customers and to delivery executives.
What should be your immediate step as a manager to solve this problem?
Conduct a development program
Conduct a training program
✓ Correct
Feedback:
You are correct! Training means helping employees in learning the skills that they
need to perform their job. You can use the Kirkpatrick model to evaluate the
effectiveness as well.
Increase the turn-around time for food delivery
Recruit more staff to make up for the lack of efficiency

Types of Transfer
Match the following types of transfer with the appropriate examples.
Type of
Example
Transfer
A. Production
1. A wrongly placed employee is transferred to a more suitable job.
transfer
B. Remedial 2. Surplus employees from a division are transferred to another division

transfer that is facing a shortage of employees.
C. Versatility 3. Employees are transferred from one shift to another, usually based on
transfer mutual understanding and convenience.
4. An employee is moved from a job to another in order to gain a varied

D. Shift transfer
and broader experience of work.
A-3, B-1, C-4, D-2
A-2, B-1, C-4, D-3
✓ Correct
Feedback:
You are correct! Production transfers are made when labour requirements in a
division or branch are declining. Remedial transfers are done to correct the wrong
selection and placement of employees. Versatility transfers are also known as job
rotation and help employees gain varied work experience. Shift transfers are done in
organisations where work progresses for 24 hours or in shifts.
A-2, B-4, C-1, D-3
A-1, B-3, C-4, D-3

Succession Planning
ACME Inc. is looking to introduce succession planning as an ongoing exercise to
better plan and manage the workforce. The management board wants to have long-
serving employees to be placed in key positions of responsibility.
As a line manager at ACME Inc. what activities from the below options come under
the succession planning exercise? (Note: More than one option may be correct.)
Understand the critical positions in the organisation
✓ Correct
Feedback:
Correct! For ACME Inc., the succession planning exercise should include identifying
present and future key positions.
Develop potential employees for the key skills needed
✓ Correct
Feedback:
Correct! For ACME Inc., the succession planning exercise should include providing
potential employees with the relevant developmental experiences to make them
viable.
Transfer employees from one department to another
Ask the HR to build a directory of external candidates who can be called at

suitable times
Employee Retention Strategies
Mahila Shakti Co-operative Bank works for women empowerment by providing small
loans to women entrepreneurs. 90% of the bank’s workforce are female employees.
Since its inception, the bank has faced a high annual employee turnover rate of
around 28%. In a recent company-wide survey, it was found that one of the major
reasons for the high turnover is pregnancy and childcare duties. What strategies
should the bank employ to retain employees? (multiple correct options)
Offer competitive rewards, developmental opportunities and good quality

work environment to the employees.
Introduce a more generous maternity leave.
✓ Correct
Feedback:
You are correct! When employees leave their jobs to attend to their personal plans, it
is a good idea for the company to determine which plans are common in its
workforce and develop a tailored response. For example, a generous maternity leave
would help female employees during pregnancy.
Allow expecting mothers to work from home, saving them the trouble to
commute to work.
✓ Correct
Feedback:
workforce and develop a tailored response. For example, allowing expectant mothers
to work from home would allow them to rest.
Start a fund to support the employee’s children’s education.
✓ Correct
Feedback:
workforce and develop a tailored response. For example, starting a fund to support
the employee’s children’s education would motivate mothers to return to the
workplace post their maternity leave.
Managing Involuntary Exit
Suppose you are a sales manager at ACME Inc. One of your subordinates has been
terminated due to misconduct. How would you announce the termination to the rest
of the team?
Call a meeting of the whole team and announce the departure in the
meeting.
Send an email that emphasises the reason for termination and focuses on
the company culture and values.
✓ Correct
Feedback:
Correct! Sharing a well-crafted message would nip rumours in the bud.
There is no need to inform the termination to the team; they will anyway
get to know about it via informal channels.
Involuntary Exit
‘It is important to call out underperformers in your organisation so that their
underperformance does not become a moral dampener for the rest of the team.
However, the onus of proving incompetence is solely on the employer.’ Comment on
this statement.
Suggested Answer
The manager should immediately warn the employee of his/her underperformance
and discuss the same with him/her to remove any ambiguity. After that, the manager
should put the employee under a performance improvement plan (PIP) to
ensure that due diligence is done in the form of support as well as warnings.
How to Ensure Knowledge Transfer
Suppose a member of your team has resigned and you want to prepare a knowledge
transfer plan. What are some key points to keep in mind while preparing this plan?
(Note: More than one option may be correct.)
How should the leaving employee transfer the knowledge? E.g., should it be
documented or shared in a meeting?
✓ Correct
Feedback:
You are correct! It is important to consider ‘How to transfer the knowledge' while
creating a knowledge transfer plan.
To whom should this knowledge be transferred? E.g., has the manager

already identified a replacement?
✓ Correct
Feedback:
You are correct! It is important to consider ‘To whom to transfer it and along what
timeline’ while creating a knowledge transfer plan.
What are the organisational and departmental objectives?
What should be the timeline for the knowledge transfer? What is the notice
period being served by the leaving employee?
✓ Correct
Feedback:
You are correct! It is important to consider ‘The timeline for the knowledge transfer’
while creating a knowledge transfer plan.
Employee Involuntary Exit
What would you as a line manager do to avoid someone accusing you of wrongful
dismissal?
Suggested Answer
First, explain the full reason for termination. Then, allow the employee to explain why
he (or she) did what he did. Handle the conversation with respect and patience. Keep
all the documents of the warning and performance improvement plan at a place for
proof.
Graded assessments:
Succession Planning
Some members of the senior management at Fincorps Inc. are looking to exit the
bank in the next 2–3 years. The new management at Midwest Bank of Commerce is
looking to put a succession plan in place to avoid discontinuity in leadership. They
want to have a healthy mix of candidates from the teams at Fincops and Midwest
Bank to be placed in key leadership positions.
What should be the order of the following activities under the new succession plan?
1. Ask the HR team to identify potential candidates for key positions from the
teams at Fincops and Midwest Bank.
2. Based on the company’s strategic plans, identify key positions for the
company’s present and future needs.
3. Enroll shortlisted candidates in a ‘Future Leaders Program’ to provide them
with the relevant developmental experiences and make them viable for key
positions.
4. Assess which candidates should fill the key positions.
1-2-3-4
2-1-3-4
✓ Correct
Feedback:
You are correct! The correct order of activities is to identify key positions, identify
candidates, develop candidates and assess who will fill those positions.
2-1-4-3
1-3-2-4
Managing Employee Voluntary Exit
The company conducted an internal HR survey and found that a significant number
of Fincops employees are looking for opportunities outside the company. They are
anxious that their skills might no longer be required, given Midwest Bank’s push on
using AI tools to complete repetitive processing jobs. The company would like to
retain as many employees as possible because rehiring would be expensive.
What would be your advice to the management to tackle this issue?
Offer a one-time salary hike to all the employees to match industry

standards.
Introduce a reskilling program for employees to transfer their skill set to a

new relevant position.
✓ Correct
Feedback:
You are correct! This solution addresses the employees’ concern of their skill set
being redundant by introducing a reskilling program.
Allow flexible working hours and allow employees to work from home once
a week.
Reduce the number of working hours from 8 hrs to 6 hrs per working day.
Knowledge Transfer
Despite all efforts to prevent employee exits, the company still expects some
employees to exit. The notice period of an employee is 15 days, which is not
sufficient to hire a replacement. As a manager, what should be the correct action to
retain the knowledge of the departing employee.
Ask the departing employee to finish the work that needs to be done in
the next 3-4 months so that the new joinee gets time to settle down and
understand the work.
Create a standard knowledge transfer document including details of

processes, key tasks that were undertaken, etc. and ask the departing
employees to fill out the document.
✓ Correct
Feedback:
You are correct! This can be used for effective knowledge transfer in this case.
Ask the departing employee to stay at home and work from home during
the notice period.
Ask the departing employee to brief all his work to you quickly in half an
hour.
Unfair Business Practices
Suppose a company X, a recent entrant in the leather industry, has come up with an
innovative processing technique that significantly reduces the prices of its products.
Two leather manufacturing majors lobby together and bribe certain employees of
company X to retrieve inside information about the new process which is pending a
patent approval.
If company X comes to know of this turn of events, which body of the government
should it approach for justice and compensations?
Securities and Exchange Board of India
Registrar of Companies
✕ Incorrect
Feedback:
Two companies collude to prevent the growth of company X. You need to decide
which law is being violated here, and select the appropriate governing bodies.
Central Economic Intelligence Bureau
Competition Commission of India
✓ Correct
Feedback:
The Competition Act prohibits anti-competitive agreements and associations, and
abuse of dominant positions by companies, which are likely to create adverse effects
on fair market competition in India.
The Competition Commission of India is entrusted with the duty of enforcing the
preambles of this act.
Understanding Legal Structures
Which of the following is not true about a sole proprietorship?
A sole proprietor has to pay taxes on the profits earned
✕ Incorrect
Feedback:
This statement is correct. The profits from the business are taxable.
A sole proprietorship can have only one employee
✓ Correct
Feedback:
A sole proprietor is free to employ as many people as he/she sees fit.
It is easy to set up a sole proprietorship
A sole proprietor has unlimited liability

Understanding Legal Structures
Which of the following is true regarding partnerships? (More than one option can be
correct.)
A partnership requires at least four members to form.
The partners agree to the terms and conditions mentioned in the

partnership deed.
✓ Correct
Feedback:
All partners have to agree to the terms mentioned in the partnership deed.
All partners have unlimited liability.

Feedback:
This statement is correct.
All partners are required by law to share the profits equally.

Legal Structures
Anand and Isha are architects who met at a firm, and they now wish to set up an
architecture business of their own in Mumbai. They intend to use their skills to
provide architecture and related services to interested clients but are quite
inexperienced in running a business on their own.
They plan to hire about 10 junior architects in the coming months and will be able to
start and run the company with their own savings.
Which of the following legal entities will be best suited for their company?
Private limited company
Public limited company
General partnership
✕ Incorrect
Feedback:
A general partnership will result in the owners having unlimited liability, and is thus
not suitable for individuals like Anand and Isha.
Limited liability partnership
✓ Correct
Feedback:
An LLP is best suited in this case since it provides all the benefits of a limited liability
company with lower taxes and compliance adherence.
Legal Structures
After a year of successfully running the business, Anand & Isha wish to start a new
venture and raise money from investors.
They intend to set up a website which will help customers design their own homes
without consulting an architect.
This requires an additional 150 employees along with the onboarding of tech experts
at the firm.
Which of the following options would be best suited for them in this situation?
Limited liability partnership
Private limited company
✓ Correct
Feedback:
Starting a website which will allow customers to design their own homes is a huge
undertaking and will require investments from a lot of partners in the future.
Starting a new private limited company is the best option here. A private limited
company allows investors to have a limited liability, which will facilitate the
fundraising process.
Note that a private limited company is preferred over an LLP, as there are more
compliances (for example, annual reports and regular board meetings), which
increase investor trust and ease the process of raising funds.
Public limited company
General partnership
Board of Directors
What is the minimum number of directors for a private limited company, as
mandated by law?
✓ Correct
Feedback:
A private limited company are mandated to have a minimum of 2 directors.
4
Company Secretary
Which of the following are true regarding a company secretary? (More than one
option can be correct.)
The company secretary guides the board in legal matters
✓ Correct
Feedback:
The company secretary ensures that the company’s actions are within the
permissions of the law
✓ Correct
Feedback:
The company secretary is not mandatory for businesses
The company secretary maintains and files all required legal documentation
✓ Correct
Feedback:
Limited Liability
Which of the following is true with regard to limited liability?
Responsibility of shareholders is limited to the number of shares they hold

in the company.
✓ Correct
Feedback:
Limited Liability refers to the responsibility of a shareholder in a company. For a
limited company, a shareholder is only liable for the amount of shares they hold in a
company.
All shareholders must hold a minimum of 20 shares in a company.
All shareholders are equally responsible for the company.
A shareholder does not own anything in the company.

Business regulation in India
Kingsley Foods LLP is a limited liability partnership which exports food products such
as rice, wheat and masala powders from India to France, Germany and Italy.
The partners reside in Gurgaon and operate in Europe with the help of contracted
agencies.
Suppose one of its importers offers the partners an option to invest in agricultural
land in France on their behalf, instead of making payments for the imported
products.
Which Indian legal act will regulate this kind of transaction?
Limited Liability Partnership Act, 2008
✕ Incorrect
Feedback:
This act does not define laws which govern payments or investments made in a
foreign currency.
Foreign Exchange Management Act, 1999
✓ Correct
Feedback:
The FEMA laws govern the foreign currency payments made by businesses operating
in India.
This law restricts the investments made by Indian nationals in foreign countries.
The Goods and Services Tax Acts, 2017
The Securities and Exchange Board of India Act,1992

Limited Company
Which of the following is true regarding a public limited company? (More than one
There is no upper limit on the number of shareholders.
✓ Correct
Feedback:
This is true regarding public limited companies.
There is unlimited liability for the shareholders.
The company’s shares can be traded on the stock exchange.
✓ Correct
Feedback:
Public limited companies need to have a minimum of 7 shareholders.

Feedback:
Business Structures in India
Which of the statements are correct?
1. A sole proprietorship cannot run a service business.

2. A sole proprietorship need not be registered.
3. A partnership needs to have at least 2 members.
4. Partnerships can provide limited liability to its partners.
2 and 3
✓ Correct
Feedback:
Statements 1 and 4 are wrong, while statements 2 and 3 are correct.
1: A sole proprietorship can run any kind of business.

4: Members of a partnership have unlimited liability.
1 and 4
1 and 3
2 and 4
Incorporating a Private Limited Company
Which of the following is very important for setting up a private limited company in
India?
Obtaining Director Identification Number and Digital Signature Certificate
✓ Correct
Feedback:
Director Identification Number (DIN) and Digital Signature Certificate (DSC) are
mandatory IDs.
These documents serve as proof of the company’s registered status.
Obtaining approval from SEBI
Appointment of independent directors
Obtaining approval from Competition Commission of India

Business Ownership
Which of the following parties are the rightful owners of a limited company?
Shareholders
✓ Correct
Feedback:
Shareholders are the owners of the company. They stand to receive potential returns
on their investment (dividends) from the company.
Anyone who has invested money in purchasing shares of a publicly-traded company

is a shareholder and owner of the company.
Employees
Board of Directors
Top Management
Company Secretary
Which among the following is NOT a duty of a Company Secretary?
Acts as an authorised representative of a company to file and register

documents regarding incorporation.
Maintains statutory books, registers and records.
Advises a company’s board on compliance with legal and procedural

aspects.
Maintains reports on company growth and presents to the board
✓ Correct
Feedback:
This is the duty of the CEO and other top management members. The company
secretary’s role is limited to matters related to legal compliances required in the
company’s operations.
Validity of Contracts
Vijay and Karan run a mobile phone store in Nagpur, established as a partnership.
A few months ago, Karan made his partner, Vijay, sign on a blank paper, stating the
papers would be used for the rent agreement of a new store.
Today, Vijay received a legal notice asking him to give up his partnership with Karan,
and to pay him ₹2 lakh for pending payments.
The notice had a legal document stating Vijay’s willingness to transfer his assets to
Karan, which was signed by Vijay.
Select the true statement from below.
The contract is voidable at the option of Vijay.
✓ Correct
Feedback:
Since Vijay’s free consent was not taken while creating the contract, he can contest
this contract and get it revoked or voided. The contract is not valid on its own.
The contract is void.
This is an unenforceable contract.
This is an illegal contract.
✕ Incorrect
Feedback:
It is not an illegal contract because the object of the contract is not unlawful.
Validity of contracts
A enters into an agreement with B for renting an apartment by paying
₹25,000/month for two years.
A and B sign the rental agreement, and A pays an advance deposit of ₹1,00,000, as
agreed. Even though they are required by law to pay stamp duty on the agreement
in order to register the agreement, they do not pay the amount or register the deed.
When A tries to move in after 20 days, he finds that B has rented the apartment to C,
and C has already moved in.
B says that there is no legal document between the two (A and B).
Which if the following terms best describes the agreement between A and B?
Valid contract
Voidable contract
Illegal contract
✕ Incorrect
Feedback:
The agreement cannot be considered legal because the object or purpose of the
agreement was not to perform any illegal activity.
Unenforceable contract
✓ Correct
Feedback:
A court will not be able to enforce the agreement between A and B, as there is
neither any payment of stamp duty nor any registered deed to prove the existence of
the agreement. The agreement will become enforceable only after the stamp duty
has been paid.
Contracts
A department store advertises in a local newspaper that it is giving out 1 kg sugar for
free to whoever visits the store with a cut-out of the ad in the next two days.
What type of contract is this?
Unilateral contract
✓ Correct
Feedback:
The department store has made the offer without any agreement from the general
public. Anyone who visits the store with the cut-out is eligible to get 1 kg sugar from
the store. If they do not get sugar, as promised, then they cannot sue the store.
Bilateral contract
Invalid contract
Types of Contracts
A landowner tells a group of labourers that he will pay ₹20,000 to the person who
plows his 10-acre field by the end of the day.
Labourer A and Labourer B start plowing the field, each completing five acres of the
land.
At the end of the day, the landowner refuses to pay to either of the labourers, as
neither of them plowed 10 acres of the land.
He claims that under the law of contracts, he is not liable for any payment, as the
contract was meant for a single person ploughing the entirety of the 10-acre field.
What type of contract can the labourers invoke in a court of law to lay claim to what
is owed to them?
Implied contract
Executory contract
Quasi contract
✓ Correct
Feedback:
The court will hold that the landowner is liable to pay the labourers in a quasi-
contract. The contract-like payment obligation must be enforced on the landowner
to prevent any injustice done to the farmers.
Voidable contract
Intellectual Property
According to Indian laws, which of the following qualifies as ‘Intellectual
property’? (More than one option can be correct.)
Original literary work
✓ Correct
Feedback:
This type of content is protected by copyrights.
Blueprints of a factory

Feedback:
This type of content is protected by copyrights.
Red Bull Energy Drink logo
✓ Correct
Feedback:
This type of content is protected by trademarks.
Financial records of a public limited company

Dispute Resolution
P and Q are neighbours who have a dispute regarding the encroachment of a
parking lot. P takes his uncle, who happens to be a retired lawyer, to speak with Q.
Which of the following forms of dispute resolution does this situation represent?
Negotiation
✓ Correct
Feedback:
Here, the question does not mention whether or not P’s uncle will take a neutral
stand in the discussion. It can be assumed that he will be discussing the situation on
P’s behalf, thus this is a negotiation.
Mediation
Arbitration
Conciliation
Dispute Resolution
Which of the following statements regarding arbitration is true? (More than one
Disputing parties can select an arbitrator of their liking.
✓ Correct
Feedback:
Arbitrations resolve disputes quicker than litigations.
✓ Correct
Feedback:
Arbitration is a private and confidential process.

Feedback:
The results of arbitration are not legally binding.
✕ Incorrect
Feedback:
The results of arbitration are legally binding and can be enforced by a court of law.
Types of Contracts
Suppose Mercedes Benz India has ordered 10,000 units of headlamps from a vendor.
Both parties entered into a contract requiring the vendor to deliver the units at
Mercedes’s plant latest by 15 August. The payment for the headlamps would be
made within 15 days of the delivery.
By the end of 14 August, Mercedes had received only 7,000 units from the vendor.
Which of the following best describes the condition of the contract at this point?
Unilateral contract
Executory contract
✓ Correct
Feedback:
The vendor completed the contractual obligations partially. Thus, the contract would
be considered an executory contract.
Quasi-contract
Void contract
Arun Chauhan runs a famous dhaba (eatery), Chauhan Dhaba, near Delhi. He is facing
stiff competition from nearby dhabas, most of which are also called Chauhan Dhaba.
Customers, unaware of the correct location of the dhaba, end up visiting one the
multiple Chauhan Dhabas in the area, which results in losses for Arun Chauhan.
How can Mr Chauhan safeguard the identity of his dhaba?
Copyright
Trademark
✓ Correct
Feedback:
A unique logo of Chauhan Dhaba can be registered as a trademark, which can then
be advertised by Mr Chauhan. This trademarked logo cannot be copied by any other
restaurants and will resolve the issue faced by Mr Chauhan.
Patent
Competition Commission of India
Which of the following is a function of the Competition Commission of India?
Preventing competition in the market
Preventing abuse of dominance in the market
✓ Correct
Feedback:
The function of the Competition Commission of India is to promote fair competition
in the market. It prevents abuse of dominance by a company in the market, so that
other companies get a fair chance to grow.
Protecting the interests of consumers
Ensuring fair treatment of employees

Certain liquids when placed in platinum containers produce a distinct sound after
they are tapped on with a glass rod. This is used for making certain musical
instruments.
Answer the following questions:

A: How can the inventor of such a musical instrument protect the design of the
product?
B: The inventor has also produced unique music using this instrument. How can they
prevent their music from being copied?
A: Patent
B: Copyright
✓ Correct
Feedback:
A: A unique invention or idea can be protected from illegal copying by creating a
patent.
B: Unique expressions such as music, photographs and art can be protected by the
Copyright Act.
A: Copyright
B: Patent
A: Trademark
B: Patent
A: Patent
B: Trademark
Dispute Resolution Mechanisms
Select the correct statement regarding Alternative Dispute Resolution mechanisms
from the ones given below.
A negotiation cannot be completed without the involvement of a neutral

third party.
The results of mediation are binding on the parties, but the results of
arbitration are not.
Mediators can direct the parties to take a certain decision.
In conciliation, the final decision is that of the disputed parties.
✓ Correct
Feedback:
A conciliator can only make settlement proposals to the parties involved. The parties
can opt to accept or reject these proposals. Thus, the decision of the disputed parties
is considered final.
Arbitration
Which of the following statements regarding arbitration is incorrect?
Disputed parties have more control over the resolution process in

arbitration, as compared to litigation.
Disputed parties can select an expert on the subject of dispute to act as an

arbitrator.
Arbitration is less efficient and more expensive than litigation.
✓ Correct
Feedback:
This statement is wrong. Arbitration is more efficient and less expensive than
litigation.
Arbitration has more decisional finality than a conciliation.

Trademarks
Trademark law protects _________.
Words, symbols or signs that differentiate goods or services from one

another
✓ Correct
Feedback:
Any collection of words, symbols or signs that represent a unique business can be
registered as a trademark.
Property rights
Names of specific people and places
Inventions that feature some sort of functional use

Ethics
James works as a salesperson at a B2B supply company.
He learns that his manager will not assign a key account to him because he did not
attend a party hosted by his manager. Which of the following approaches to ethics is
being violated here?
Utilitarian approach
Virtue approach
Fairness approach
✓ Correct
Feedback:
In this situation, the manager is being discriminatory against James. He is treating
James unfairly due to his personal reasons, which is against the tenets of fairness and
justice at the workplace.
Common good approach

Ethics in Business
Media companies often have to put their business interests ahead of what is good
for the public.
Which of the following situations is unethical for a media organisation?
(More than one option can be correct.)
Stopping the coverage of a controversial event when advertisers threaten

to stop advertising on the channel
✓ Correct
Feedback:
The option that you have selected is correct. But, you need to consider all the
options before answering.
Not covering disadvantaged groups, as such groups do not have consumer

power
✓ Correct
Feedback:
Cutting staff to save money, even if it results in affecting the quality of news
coverage

Feedback:
Hosting live sessions regarding hot topics
✕ Incorrect
Feedback:
This activity is ethical.
Code of Conduct
Which of the following is an objective of the Code of Conduct of an
organisation? (More than one option can be correct.)
Setting boundaries of acceptable behaviour
✓ Correct
Feedback:
Reducing the risks and associated costs of misbehaviour, fraud and other
ethical failures

Feedback:
This statement is correct
Introducing the organisation’s standards to new employees
✓ Correct
Feedback:
Making it easier for the organisation to do business with anyone
✕ Incorrect
Feedback:
Having a strict code of conduct makes it difficult for an organisation to do business
with everyone.
Building an ethical reputation is an expensive affair, and high ethical standards may
prevent association with certain companies and people.
CSR
CSR boosts revenue and profit because _________.
Consumers do not respond positively to links between the organisation and

ethically acceptable outcomes
Being ethical costs money
An increase in demand will reduce revenue and profitability
Consumers respond positively to links between the organisation and

ethically acceptable outcomes
✓ Correct
Feedback:
Ethical responsibility bolsters company image in the public eye. People are more
likely to purchase from a company whose values align with public perception.
Triple Bottom Line Theory
The triple bottom line theory refers to the three responsibilities fulfilled by CSR.
Which of the following can be one of the three responsibilities? (More than one
Competitive sustainability
✕ Incorrect
Feedback:
CSR is not responsible for ensuring competitive sustainability in an organisation.
Social sustainability

Feedback:
This option is correct.
Economic sustainability
✓ Correct
Feedback:
Environmental sustainability
✓ Correct
Feedback:
Theories of Ethics
Which of the following statements is consistent with the utilitarian view of ethics?
Adhering to a set of principles will prevent an individual from creating

overall good consequences.
If the consequences of an action create good for a large number of people,

then the action is justified.
✓ Correct
Feedback:
The utilitarian theory assumes that an action can be justified if it creates the greatest
good for the greatest number.
Ends do not justify the means.
This approach assesses an action in terms of intentions.

Triple Bottom Theory
Which of the following statements falls in line with the triple bottom line theory?
A socially sustainable firm will be against the exploitation of the workforce.
✓ Correct
Feedback:
A company which refuses to treat the chemical discharge from its

production plants meets the criteria for triple bottom line theory.
A company should not make decisions that benefit it in the short term.
A company refusing to hire people older than the age of 40 meets the
criteria for triple bottom line theory.
CSR Law
As per the Companies Act, an organisation’s CSR committee should consist of three
or more directors.
Of this, at least one of them should be _________.
Managing director
Executive director
Independent director
✓ Correct
Feedback:
An outside director (or independent director) in the CSR committee is mandated by
the Companies Act, 2013.
HR director

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OCEAN framework

Ratan Tata is low on conscientiousness, as he has a sense of concern for the

Ratan Tata scores high on agreeableness as he is willing to help and be

✓ CorrectYou missed this!

A corporate mentorship programme is an example of social learning

A corporate mentorship programme is an example of visual learning

A corporate mentorship programme is an example of auditory learning

A corporate mentorship programme is an example of kinesthetic

Determine the type of bias in play in Hari’s situation.

1-a, 2-b, 3-c

1-b, 2-a, 3-c

1-a, 2-c, 3-b

1-c, 2-a, 3-b

Name OCEAN Traits

1. Sushant a. Low on agreeableness

2. Bhavya b. Low on extraversion

3. Raghav c. Low on neuroticism

1-b, 2-c, 3-a

1-a, 2-b, 3-c

1-c, 2-b, 3-a

1-b, 2-a, 3-c

1. Taking detailed notes instead of participating in the discussions

All of the above

What form of reinforcement technique is this?

There is a fine line between negative reinforcement and punishment. While

All of the above

Based on the characteristics mentioned above, which of the following statements

Manish scores low on extraversion

Manish scores high on neuroticism

Manish scores high on openness

Manish scores low on agreeableness

Under which of the following learner types can Sahil be categorised?

None of the above

Type of Team Function

1. Problem-solving a. Employees from similar hierarchies come together, and different

2. Cross-functional b. Employees from different regions collaborate on electronic platforms such

c. Employees from different departments come together to solve a business

1-a, 2-c, 3-b

1-b, 2-c, 3-a

1-c, 2-a, 3-b

1-b, 2-a, 3-c

Broad Role Specific Role

1. Action-oriented roles a. Evaluating all options before making a decision

2. People-oriented roles b. Continuously challenging the team to improve

3. Thought-oriented roles c. Exploring opportunities and developing contacts

1-c, 2-a, 3-b

1-c, 2-b, 3-a

1-a, 2-c, 3-b

1-b, 2-c, 3-a

(1) Silent authority a. Influencing someone by using logical arguments

(2) Exchange b. Exchanging resources or benefits with the person to be influenced

(3) Persuasion c. Using legitimate power to influence team members

1-b, 2-a, 3-d, 4-c

1-c, 2-b, 3-a, 4-d

1-a, 2-d, 3-c, 4-b

1-d, 2-c, 3-b, 4-a

Conflict owing to status

Conflict owing to personality

Conflict owing to resources

This is an example of a conflict owing to resources, as there is an argument over

Conflict owing to goals

Type of Team Characteristics