SECTION A : VERBAL AND LOGICAL ABILITY

 

Analyse the following passage and provide an appropriate answer for the questions 14 through 17 that follow.

 

Number of words in this passage : 281

 

Demography of organisations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organisation, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation's development have long-term consequences. In particular, organisations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organisations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organisations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation's core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organisations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organisations in a population (density) drives processes of social legitimatisation and competition that, in turn, shape the vital rates.

 

 

14. Most top-notch business consultants recommend changing the entire configuration of an organisation's strategy, structure and systems. If he ideas contained in the passage are agreed to, then such a recommendation:

      A.  tends to rejuvenate the organisation.

B.  tends to make the organisation more aligned to the external environment.

C.  tends to increase the competitiveness of the organisation by redefining its core competence.

D.  tends to increase the vulnerability of the organisation.

E.  tends to make the organisation industry leader by reformulating its niche.

 

Explanatory Note:

Since change is ‘disruptive and increases mortality hazards’ it follows that ‘changing the entire configuration of an organisation’s strategies, structure and systems’ would make it more vulnerable.                                                                         Choice (D)

 

15. Consider the following: "Tata Steel, one of the biggest steel makers in the world, was born in Jamshedpur." If above passage is true, then it can be concluded that the location of Tata Steel has been one of the reasons for its success.

      1.   The conclusion is false.

      2.   This is a farfetched conclusion.

      3.   This is a valid conclusion.

      A.  1 only                   B.  2 only                        C.  3 only                              D.  1 and 2                       E.  2 and 3

 

Explanatory Note:

The conclusion that the location of Tata Steel has been one of the reasons for its success is valid because the passage says ‘. . . environmental conditions at certain early phases in an organization’s development has long-term consequences’ (lines 4-5).                                                                                                                                                                  Choice (C)

 

16. "Tata Steel, one of the biggest steel makers in the world, was born in Jamshedpur. The very success of Tata Steel could lead to its failure in the future and hence the challenge for Tata Steel is to recognise its strengths that made it successful in the initial conditions and stick to them."

      1.   This is a valid conclusion.

2.   The conclusion is contrary to the ideas described in the passage.

3.   The conclusion is internally contradictory.

      A.  1 only              B.  2 only                              C.  3 only                              D.  1 and 2                       E.  2 and 3

 

Explanatory Note:

This is a valid conclusion as per the passage since the passage says ‘. . . changes in an organisations core features are disruptive and increase mortality hazards . . . . ‘ (lines 10-11).                                                                             Choice (A)

 

17. Recently it was reported that the Indian textile sector was not doing well. If the ideas contained in the passage are agreed to, then which of the following could be the possible reason(s)?

1.   All Indian firms are as old as international firms.

2.   Indian textile firms are dispersed all over the country, with most of them also having international presence.

3.   Textile firms in India were subjected to trade union activity in the period from 1960s to 1980s.

A.  1               B.  2                                           C.  3                                     D.  1 and 2                 E.  1, 2 and 3

 

Explanatory Note:

Since the passage says ‘environmental conditions . . . have long-term consequences’ (lines 4-5), statement 2 could be the reason. Statement 1 is ruled out since being ‘as old as international firms’ would means all are affected equally by age or time. Statement 3 is ruled out since nothing is mentioned about trade unions.                                                                 Choice (B)