Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): Indian companies are handing out mid-term salary hikes and quarterly bonuses to their top performers and top teams.
Reason (R): Intense competition and rising attrition levels are pushing companies to find ways of retaining their people.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): Indian companies are handing out mid-term salary hikes and quarterly bonuses to their top performers and top teams. — True. Reliance Industries, Marico and Dabur gave mid-term increments of 15-20% to top performers. Several firms also give quarterly bonuses to top teams.
Reason (R): Intense competition and rising attrition levels are pushing companies to find ways of retaining their people. — True. Attrition means employees leaving the company. With many firms hiring, more people leave, so companies look for ways to keep their talent.
Why R explains A?
Competition and attrition raise the danger of losing good performers. Losing one is costly, because a new person takes up to six months to pick up the skills. So companies pay extra in the middle of the year to make their best people stay. The hikes and bonuses in A are this way of retaining people.
Note: Even a newspaper report printed inside the chapter can give a full Assertion-Reason question. Do not turn the page without reading it.
NCERT (2026-27 Edition):
|
