Decision Making Questions for NABARD Grade A 2025 | Set-2

Correct Answer – C. Identify the decision

Explanation: 7 steps of the decision-making process

• Identify the decision.
• Gather relevant info.
• Identify the alternatives.
• Weigh the evidence.
• Choose among the alternatives.
• Take action.
• Review your decision.

Correct Answer – D. Reactive Management

Explanation- Reactive management consists of reacting quickly after the problem occurs, by treating the symptoms. This type of management is implemented by reactive systems, self-adaptive systems, self-organized systems, and complex adaptive systems. The goal here is to react quickly and alleviate the effects of the problem as soon as possible.

Proactive management is a leadership style that emphasizes strategic planning and risk management rather than taking a reactive approach to situations and business goals. Proactive management can be applied to any industry through leadership that puts an emphasis on planning and forward thinking.

Correct Answer – C. Fault Tree Analysis

Explanation- Fault tree analysis (FTA) was originally developed in 1962 at Bell Laboratories by H.A. Watson, under a U.S. Air Force Ballistics Systems Division contract to evaluate the Minuteman I Intercontinental Ballistic Missile (ICBM) Launch Control System.

Fault tree analysis (FTA) is a type of failure analysis in which an undesired state of a system is examined. This analysis method is mainly used in safety engineering and reliability engineering to understand how systems can fail, to identify the best ways to reduce risk and to determine (or get a feeling for) event rates of a safety accident or a particular system level (functional) failure.

Fault tree analysis can be used to:

• Understand the logic leading to the top event / undesired state.
• Show compliance with the (input) system safety / reliability requirements.
• prioritize the contributors leading to the top event- creating the critical equipment/parts/events lists for different importance measures
• Monitor and control the safety performance of the complex system (e.g., is a particular aircraft safe to fly when fuel valve x malfunctions? For how long is it allowed to fly with the valve malfunction?).
• Minimize and optimize resources.
• Assist in designing a system. The FTA can be used as a design tool that helps to create (output / lower level) requirements.
• Function as a diagnostic tool to identify and correct causes of the top event. It can help with the creation of diagnostic manuals / processes.

Correct Answer: C. Authoritative

Explanation-One of the methods of decision making calls upon authoritative decision making. Authoritative decision making might be recommended only for team leaders or project managers who have the required ability to use this method of devising decisions. Authoritative decision making is used when a person held responsible has all the knowledge and expertise to churn out the best possible solution to the problem. In such conditions the leader is the sole person to make a decision.

Correct Answer – C. Heuristic decision making

Explanation- Heuristics is the process by which humans use mental short cuts to arrive at decisions. Heuristics are simple strategies that humans, animals, organizations, and even machines use to quickly form judgments, make decisions, and find solutions to complex problems. Often this involves focusing on the most relevant aspects of a problem or situation to formulate a solution. While heuristic processes are used to find the answers and solutions that are most likely to work or be correct, they are not always right or the most accurate. Judgments and decisions based on heuristics are simply good enough to satisfy a pressing need in situations of uncertainty, where information is incomplete. In that sense they can differ from answers given by logic and probability.

The economist and cognitive psychologist Herbert A. Simon introduced the concept of heuristics in the 1950s, suggesting there were limitations to rational decision making. In the 1970s, psychologists Amos Tversky and Daniel Kahneman added to the field with their research on cognitive bias. It was their work that introduced specific heuristic models, a field which has only expanded since. While some argue that pure laziness is behind the heuristics process, others argue that it can be more accurate than decisions based on every known factor and consequence, the less-is-more effect.

Correct Answer – D. Assure her that the decision was fair, and motivate her to work harder next time

Explanation-The situation talks about how one employee was preferred over the other for a position, based on their performance on an assignment. Here, the best way for the HR to deal with the complaint raised by Ms. Sreejita would be to motivate her to try harder the next time there is the possibility of a promotion, and assure her to keep faith in the selection process. Thus, E is the right answer. A is too extreme, which will make it incorrect. B is incorrect because this would set the precedent that an employee who complains about being rejected for a position should be given another position as compensation. C is incorrect as it would undermine the decision of the team lead. D is neither too extreme nor unreasonable, but is incorrect because the team lead is not obligated to share the assignment of another candidate with the rejected candidate simply because he/ she is dissatisfied with the decision.

Correct Answer – D. Ms. Sreejita has handled digital marketing projects in the past with good results

Explanation-The situation talks about how one employee was preferred over the other for a position, based on their performance on an assignment. Here, the argument that will strengthen Ms. Sreejita’s case would be that she has experience working in the same field previously and has excelled in it. Thus, E is the right answer. A is incorrect as it does not prove Ms. Sreejita’s competence over Mr. Ravi in this field . B is incorrect because greater experience in the company would not necessarily translate to better performance in a specific department. C is incorrect as it would imply that the team lead was partial towards Mr. Ravi, which would render Ms. Sreejita’s argument weak. D is incorrect as the time for which the interview lasted has nothing to do with the selection.

Correct Answer – A. Mr. Ravi is rude to his colleagues sometimes

Explanation- The situation talks about how one employee was preferred over the other for a position, based on their performance on an assignment. Here, the argument that will most weaken Ms. Sreejita’s case would be something unrelated to the selection process. B talks about Mr. Ravi’s behaviour apart from his work ethic or performance, which is not related. Thus, B is the right answer. A, C and E would strengthen her arguments. D is incorrect because although it would weaken her argument if she were to point out Mr. Ravi’s incompetence, B would weaken her assertion even further.

Correct Answer – D. Apologise to the customer and offer a replacement for the dish free of charge

Explanation-The situation talks about a customer who is dissatisfied with the quality of food served to him and complains that it is stale. Since the customer is a regular one, it is likely that he is not complaining on unreasonable grounds. The most appropriate way to deal with the issue would be to apologise at once to the customer and offer to replace the dish for free. Thus, A is the right answer. B and E do not address the issue faced by the customer, and would end up aggravating it. C would place the entire blame for the incident on the head chef, which would be too extreme. D is incorrect as it is unreasonable to expect the customer to pay at all for a stale dish.

Correct Answer – B. Speak rudely to the customer and deny him service

Explanation-The situation talks about a customer who is dissatisfied with the quality of food served to him and complains that it is stale. Since the customer is a regular one, it is likely that he is not complaining on unreasonable grounds. The most inappropriate way to deal with the issue would be to treat the customer impolitely and deny him service. Thus, E is the right answer. A and C would be suitable ways for Kamlesh to act. B would be unnecessary, but not unreasonable. D is also inappropriate, but not more than E.