Decision-making caselets

Q1 · Decision-making caselets · EASY

Arjun, the operations manager of a logistics firm, is preparing the annual bonus for his team of 100 employees. The board has fixed the bonus pool at Rs 6,00,000. Company policy splits employees into 'High Performers' (the top 20% of the 100 employees) and 'Standard Performers' (the other 80%). 60% of the pool is reserved for High Performers and 40% for Standard Performers. Within each category the money is shared equally among the employees who have completed at least one year of service; the rest get no bonus. This year 10 High Performers and 20 Standard Performers have not completed one year. The union says the split is unfair to Standard Performers; the finance team insists on the 60-40 split to control costs. How much of the pool goes to the High Performer category?

Q2 · Decision-making caselets · MEDIUM

Arjun, the operations manager of a logistics firm, is preparing the annual bonus for his team of 100 employees. The board has fixed the bonus pool at Rs 6,00,000. Company policy splits employees into 'High Performers' (the top 20% of the 100 employees) and 'Standard Performers' (the other 80%). 60% of the pool is reserved for High Performers and 40% for Standard Performers. Within each category the money is shared equally among the employees who have completed at least one year of service; the rest get no bonus. This year 10 High Performers and 20 Standard Performers have not completed one year. The union says the split is unfair to Standard Performers; the finance team insists on the 60-40 split to control costs. How many Standard Performers will receive a bonus this year?

Q3 · Decision-making caselets · HARD

Arjun, the operations manager of a logistics firm, is preparing the annual bonus for his team of 100 employees. The board has fixed the bonus pool at Rs 6,00,000. Company policy splits employees into 'High Performers' (the top 20% of the 100 employees) and 'Standard Performers' (the other 80%). 60% of the pool is reserved for High Performers and 40% for Standard Performers. Within each category the money is shared equally among the employees who have completed at least one year of service; the rest get no bonus. This year 10 High Performers and 20 Standard Performers have not completed one year. The union says the split is unfair to Standard Performers; the finance team insists on the 60-40 split to control costs. How much does each qualifying High Performer receive?

Q4 · Decision-making caselets · EASY

Meera, the HR head at a logistics firm, manages the annual performance bonus pool of Rs 4,00,000. Company policy dictates that 50% of the pool is reserved for employees with 'Outstanding' ratings, 30% for 'Good' ratings, and 20% for 'Average' ratings. This year, there are 4 employees with 'Outstanding' ratings, 8 with 'Good' ratings, and 10 with 'Average' ratings. Meera's immediate manager, Raj, argues that the 'Average' category includes key drivers whose retention is critical to prevent operational disruption, so their per-person bonus should be increased to match the average per-person bonus of the 'Good' category. However, the finance director insists that the fixed percentage split must be respected to maintain budgetary discipline. Meera must decide how to distribute the Rs 80,000 allocated for the 'Average' category. The 'Outstanding' and 'Good' categories have already been fully distributed according to the strict policy. If Meera follows Raj's suggestion, she must adjust the distribution within the 'Average' category to ensure no individual receives more than the average amount of the 'Good' category, while still exhausting the full Rs 80,000 budget for the 10 'Average' employees. What is the maximum amount Meera can allocate to a single 'Average' rated employee if she decides to follow Raj's suggestion that their per-person bonus should match the average per-person bonus of the 'Good' category?

Q5 · Decision-making caselets · MEDIUM

Meera, the HR head at a logistics firm, manages the annual performance bonus pool of Rs 4,00,000. Company policy dictates that 50% of the pool is reserved for employees with 'Outstanding' ratings, 30% for 'Good' ratings, and 20% for 'Average' ratings. This year, there are 4 employees with 'Outstanding' ratings, 8 with 'Good' ratings, and 10 with 'Average' ratings. Meera's immediate manager, Raj, argues that the 'Average' category includes key drivers whose retention is critical to prevent operational disruption, so their per-person bonus should be increased to match the average per-person bonus of the 'Good' category. However, the finance director insists that the fixed percentage split must be respected to maintain budgetary discipline. Meera must decide how to distribute the Rs 80,000 allocated for the 'Average' category. The 'Outstanding' and 'Good' categories have already been fully distributed according to the strict policy. If Meera follows Raj's suggestion, she must adjust the distribution within the 'Average' category to ensure no individual receives more than the average amount of the 'Good' category, while still exhausting the full Rs 80,000 budget for the 10 'Average' employees. If Meera strictly adheres to the finance director's rule that the Rs 80,000 allocated for the 'Average' category must be distributed equally among the 10 'Average' employees, what is the difference in per-person bonus between an 'Outstanding' employee and an 'Average' employee?