XAT BDM or XAT Business Decision Making is not a jolly section for sure. You definitely need to be careful about this section, particularly because there’s not much material that helps you get your around this section. Let’s jump right into it.
Before we go about the preparation for XAT BDM, keep in mind that it is very important to go through the previous year XAT Papers. This will help you get a sense of what the creators of the XAT have in mind, while creating the BDM Section.
So definitely go through the actual papers. There’s a playlist that practically gives the entire XAT BDM questions on 2IIM’s channel, so definitely go through that. We’ve done all the XAT BDM Questions, with reasonably detailed video solutions, keeping in mind the answer choices that the creators of the XAT have suggested.
The XAT BDM Section
Remember that while the XAT BDM Section is kind of subjective, a set of rules or a framework to keep in mind definitely helps.
Beyond this, question selection also plays a key role in your ability to nail this section. You need to find out what kind of sets you get right. So spend some time thinking about that.
Is it the ethical dilemma type or the moral dilemma type? Yes, they are different! 😛 Is it the kind where numbers and hard data are thrown in? Or is there a touch of geopolitics thrown in somewhere? Or is it a question where organizational culture and human resources come into play?
You need to figure out which sets you’re good at and gravitate towards that.
Get sufficient practice. Remember to pause and take time to think…rewire your thinking just enough to understand what the creators of the set were thinking. That is very crucial. Take your time, practice and wind your head around what this is about. 🙂
Framework for XAT BDM | Dos and Don’ts
Let’s look at a broad framework on the dos and don’ts for the XAT BDM Section.
1. Go for the choices that are by the book. Do NOT go for any choices that are illegal or unethical.
For example, if the questions says, “we need to go about this the way things are typically handled at government agencies”, there should be an alarm that goes off in your head. This is hinting at the bureaucratic nightmares that government offices are, so we definitely do not recommend going ahead with this.
Pragmatically, you could say that this is how life and our country is etc. etc., but for the exam, you cannot recommend anything that is even borderline illegal or unethical. Simply put, you cannot recommend anything shady. This automatically eliminates a bunch of choices, so keep that in mind.
2. In terms of options, have a bias towards consultative/collaborative options. Avoid extreme and passive options.
When the option says things like, “bring in all stakeholders”, “talk to the management AND employees”, “talk to customers and vendors”, “talk to both sides of the party”…any of the options which is collaborative in nature and brings people together to discuss things…is an option to be biased TOWARDS.
Avoid extreme options such as, “the vendor is not delivering, cancel everything”, “cancel all outstanding orders from a vendor even if it means incurring losses”, “pull the product”, “sue the place”…stay away from any of those extreme options. Stay away from them. Be biased AGAINST them.
On the other hand, you should also stay away from the passive options. The “do nothing” options. Be biased AGAINST them.
For example, if a bunch of kids are playing and a couple of them get involved in a scuffle, and you’re an external observer looking at it, you will have a bunch of options to choose from. “Talk to the kids/divert them and then let them continue the play”, “communicate what was happening to the parents” are choices you should consider.
There will be another choice, which will be, “do nothing, kids will sort themselves out”. The “do nothing” option is DEFINITELY NOT the right answer, within these contexts. Even if your natural inclination is towards the passive options, for the exam…stay away from them!
3. Look for language cues. Do NOT gloss over details.
Look for language cues. In the XAT 2020 BDM Section, there was one Vana Rajya set which bid you to “choose the best option” while keeping in mind nutrients, water and forest cover. All 3 aspects. The question is clearly asking you to look at all 3 criteria while you are evaluating choices. You need to look for options that tick all all 3 boxes. If nothing does, then select the one which ticks 2 boxes.
Point is, language cues are very powerful, so definitely look for them. Read the question once, twice over because the criteria are defined very well. They tell you what you should be looking for. You only need to look for them. These criteria and distinctions are very crucial.
Sometimes a question or a case will involve something unethical or illegal where some investigation is being done. Carefully observe the language, for it will make it very clear that some discrepancy is being looked into or whether there is an error that has been caught. You will need to investigate the former and handle the latter.
The other thing to keep in mind is do not rush over the material. Do NOT read too fast.
For example, consider the question: Which of the following is the best criterion for Ramesh to keep in mind while evaluating this decision? Arrange them in descending order of importance.
On the other hand, consider this: Which of the following is the criterion best suited for Ramesh to support this decision. Arrange them in descending order of importance.
The first one is validating a decision. It is an important criteria, which might or might no go your way for the decision, but it is a crucial criterion nevertheless.
The second question is the best one for supporting your decision. In which case, you should be looking for a choice which says what you did is right.
There is a huge difference between evaluating and supporting a decision.
So definitely do NOT gloss over the details. The passages are going to be frightfully short, set within short contexts. The questions won’t be too long either. So do not rush through the reading part. Read twice or thrice, grab all the details, the move further on. 🙂
4. Look for sustainable, long-term options. Avoid “quick fix” options.
When you’re looking for choices, look for sustainable, long-term options or solutions. Suppose you have to set up a factory in 1 out of 3 different states and there is a network available in 1 state which is very close to your customer base due to which the logistics become simpler. The long-term sustainability is clear in this one, and the environmental damage is minimal, so definitely go for options such as this one. Be biased TOWARDS these options.
The other option will say: One state is offering a 3-year tax holiday under the special economic zone criterion OR a 2 year window with inexpensive loans…then do NOT for those options. Be biased AGAINST quick fix options.
A Final Note
So those were the broad criteria that form that framework for nailing the XAT BDM Section, which specific dos and don’ts. There are huge case by case variations, so do not rush through any of them. Have your wits about you and get comfortable in knowing which sets you should avoid and define the sets that you are kind of good at.
Back yourself, attempt this section and accept the fact that there will be some margin of error in this section. There are 21-22 questions in this section. If you attempt 12-15, and get 8-9 right…it is actually a very decent score.
Hope for the best, but also make sure you try your best! 🙂
Stay Safe and Best Wishes for XAT!
Rajesh Balasubramanian takes the CAT every year and is a 4-time CAT 100 percentiler. He likes few things more than teaching Math and insists to this day that he is a better teacher than exam-taker.
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