Previous Year Questions

Question :

Read the following information and answer the question that follows.

In an organization, there are only two grades of employees, viz., grade 1 and grade 2. The organization hired only freshers till now and the starting salary of a grade 1 employee was ₹14000 while that of a grade 2 employee was ₹25000. The employees get an appraisal after every 12 months in the organization. They will now start hiring experienced people for both the grades. This will lead to a salary disparity among the people working in the same grade as experienced people will get a hike based on their previous salaries and hence, will be paid more than the existing employees. The employees who have been working in the organization has demanded a normalization of the salaries so that people who are at the same position get paid the same salary. The management is looking into the issue and has laid out a questionnaire which must be answered by the existing employees with a 'Yes' or a 'No'.

A 'No' to which of the following questions in the questionnaire may lead the management to decline the demand for normalization of the salaries?

(A) If normalization of salary is done, then the appraisal will be given after every 15 months completed in the organization. Will it be acceptable to each employee?

(B) If normalization of salary is done, then the HRA (house rent allowance) component from the salary will no longer be paid by the employer. Will it be acceptable to each employee?

(C) If normalization of salary is done, then the number of leaves assigned per year will be reduced by 20%. Will it be acceptable to each employee?

(D) If normalization of salary is done, then existing employees can leave the organization only after working for 5 years. Will it be acceptable to each employee?