Read the given passage and answer the question.

Naik, AGM Materials. is fuming and fretting. He bumped into Kamath. GM (Materials), threw the resignation letter on his table, shouted and walked out of the room swiftly.

Naik has reason for his sudden outburst. He has been driven to the wall. Perhaps, details of the story will tell the reasons for Naik's bile and why he put in his papers, barely four months after he took up his present assignment.

The year was 2021 when Naik quit the prestigious SAIL plant at Vishakapatnam. As a manager materials, Naik enjoyed powers he could even place an order for materials worth Rs. 25 lakh. He needed nobody's prior approval.

Naik joined a pulp-making plant located at Harihar in Karnataka, as AGM Materials. The plant is a part of the multi-product and multiplant-conglomerate owned by a prestigious business house in India.

Obviously, perks, designation and reputation of the conglomerate lured Naik away from the public sector steel monolith.

When he joined the eucalyptus pulp making company. little did Naik realise that he needed prior approval to place an order for materials worth Rs. 12 lakh. He had presumed that he had the authority to place an order by himself worth half the amount of what he used to do at the mega steel maker. He placed the order. materials arrived. were received, accepted and used up in the plant.

Trouble started when the bill for Rs. 12 lakh came from the vendor. The accounts department withheld payment for the reason that the bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing the order.

Naik felt fumigated and cheated. A brief encounter with Kamath only aggravated the problem. Naik was curtly told that he should have known company rules before venturing. Naik decided to quit.


1. The job of AGM material is to

(a) Place order

(b) Receive material

(c) Inspect material

(d) Issue material


2. Given below are two statements:

Statement 1: Mr. Naik's presumption that he could place an order for materials with Rs. 25 lakh was right.

Statement II: Perks and reputation of the conglomerate were the reasons for Mr. Naik joining the eucalyptus pulp making company.

In the light of the above statements, choose the correct answer from the options given below:

(a) Both Statement I and Statement II are true

(b) Both Statement I and Statement II are false

(c) Statement I is true and Statement II is false

(d) Statement I is false and Statement II is true


3. As per the passage, who is at fault?

(a) Mr. Naik

(b) Mr. Kamath

(c) Both Mr. Naik and Mr. Kamath

(d) Human Resource Department


4. Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R

Assertion (A) It was right on the part of accounts department to withheld payment.

Reason (R): Mr. Naik had the authority to place the order for materials with Rs. 25 lakh.

In the light of the above statements, choose the most appropriate answer from the options given below:

(a) Both (A) and (R) are correct and (R) is the correct explanation of (A)

(b) Both (A) and (R) are correct and (R) is not the correct explanation of (A)

(c) (A) is correct but (R) is not correct

(d) (A) is not correct but (R) is correct


5. What is the most ineffective in the organization?

(a) Recruitment policy

(b) Selection policy

(c) Induction programme

(d) Promotion policy



ANSWERS

1 - a

2 - d

3 - d

4 - c

5 - c