Direction (Q. 1-5): Below is given a passage followed by several possible inferences which can be drawn from the facts stated in the passage. You have to examine each inference sepa rately in the context of the passage and decide upon its degi ee of truth and falsity.
A survey condu cted in India has indicated that in the core section of the < ;ompanies which have been analysed, the compensation pa ckage for executives was divided into several fringe benefit groups. The number of items included in it rose as one ascended the management hierarchy. In many companies, provision was made for transportation, medical and housing assistance. A few companies also provided for children's education or permitted family allowance. Some of them have now adopted a specialised approach called the the 'cafetaria approach' in salary fixation. What is sought here is that the benefits must meet the executives, needs. Therefore, an appropriate selection of the benefits has to be made in terms of his needs after consulting him. Thus, this approach would individualise the system as the final choice is left to the executive concerned.
While designing the compensation package for executives, certain companies try to establish a match between needs needs and benefits.
A. if the inference is definitely true, ie it properly follows from i the statement of facts given.
B. if the inference: is probably true though not definitely true in the light of the facts given.
C. if the data a re inadequate, ie from the facts given, you cannot say whether the inference is likely to be true or false.
D. if the inference is probably false though not definitely true in the light of the facts given.
Answer & Explanation
Answer : Option
Yes, this approach is known as
'cafetaria approach' where needs and benefits
of the executives are matched.