Decision Making in XAT: Question Types, Solving Strategies & Scoring Tips for 2026
- MBA Entrance Exam Expert
- Oct 3
- 6 min read
Among all Indian MBA entrance exams, the Xavier Aptitude Test (XAT) stands apart with one distinctive section: Decision Making (DM). Unlike CAT, GMAT, or SNAP, XAT doesn’t just test your aptitude — it evaluates how you respond to real-world dilemmas involving ethics, management judgment, and prioritization.
For many aspirants, Decision Making is the make-or-break section. XLRI — and several other top B-schools — often look at DM performance as an indicator of leadership maturity.
This guide unpacks everything you need to ace the Decision Making section of XAT 2026, including:
Types of DM questions
Solving strategies
Common pitfalls
How to practice for high accuracy
Real examples from past XAT papers
Table of Contents
What Is the Decision Making Section in XAT?
The Decision Making section typically consists of:
21–22 questions
Split into 7–8 caselets
2–3 questions per caselet
Each caselet presents a real-world situation and asks what the most logical, ethical, or effective course of action would be. Unlike Quant or Verbal, there's no fixed syllabus — which makes it even more critical to master the thinking process.
Scoring: This section is counted in the percentile calculation and is not optional. Performance here can strongly influence your shortlisting for XLRI BM and HRM programs.
Types of Decision Making Questions in XAT
DM questions generally fall into one of the following categories:
1. Ethical Dilemmas
Conflict between personal/professional integrity and situational pressure.
Example: Should an HR manager reveal internal fraud if it affects company share prices?
2. Business Trade-Offs
Choosing between profit, sustainability, and customer satisfaction.
Example: A company has to decide whether to launch an environmentally friendly product with lower margins.
3. Human Resource Situations
Promotion, recruitment, employee conflict resolution.
Example: Two equally competent employees are in line for one promotion. One has a better relationship with clients; the other has seniority.
4. Resource Allocation
How to distribute limited resources among competing demands.
Example: Disaster relief — which department receives how much funding?
5. Public Policy & Administration
Especially relevant for aspirants from public sector, social work, or NGOs.
Example: A school principal has to accommodate flood-affected students while maintaining performance metrics.
How to Approach XAT Decision Making Questions
1. Read the Caselet Thoroughly
Don’t rush. Understand the stakeholders involved, the conflict, and the underlying themes.
2. Identify the Decision Criteria
What matters most in this scenario?
Ethical responsibility?
Financial viability?
Stakeholder satisfaction?
Long-term vs short-term trade-offs?
3. Eliminate Emotional or Extreme Options
Most wrong answers are emotionally charged (“Immediately fire the employee”) or overly idealistic.
4. Look for Balanced Judgments
Correct options often show:
Stakeholder balance
Long-term thinking
Ethical integrity
Practical feasibility
5. Justify Your Answer Logically
Even in mocks, ask yourself: Would I be able to defend this decision in a panel interview?
Common Mistakes to Avoid
Mistake | Why It Fails |
Choosing options based on sympathy | Emotion is not a substitute for reason |
Picking the most aggressive action | Impulsive decisions are rarely correct |
Assuming facts not given | Stick strictly to the given information |
Overthinking trick questions | Go back to first principles |
Real Examples from Past Year XAT Papers
Example 1 – Ethical Dilemma
An employee discovers a flaw in the product that may not harm users but violates internal policy. Reporting it would delay the product launch.
What should the employee do? A. Keep quiet and meet the launch deadline B. Inform only their immediate supervisor C. Raise the issue with the product integrity board D. Leak the information anonymously E. Suggest an external consultant be hired to assess risk
Correct Answer: C Rationale: Involves transparency, following protocol, and avoiding shortcuts.
Example 2 – Resource Allocation
A medical camp has limited supplies. You’re in charge. There are patients who need critical surgery and others with chronic issues.
Best course of action? A. Serve all chronic patients first B. Prioritize based on arrival time C. Allocate based on urgency of condition D. Distribute equally among departments E. Postpone critical surgeries to another date
Correct Answer: C Rationale: Prioritization based on urgency is logical, ethical, and scalable.
Ideal Resources to Practice DM
Past XAT Papers (2015–2024): Best way to understand framing, tone, and question design.
TIME/IMS/CL Mocks: Often include simulated DM sections.
Books:
“Analytical Reasoning” by MK Pandey – good for logical flow
Decision Making by Nishit Sinha (Pearson) – if available
XLRI students’ blog repositories (some offer solved DM sets)
How to Improve Accuracy in DM Section
1. Maintain a Decision Log
For every question, write down:
Why you eliminated each option
Why you chose the final one
Over time, you’ll build a decision-making framework.
2. Group Discussion with Peers
Discuss mock DM sets with study groups — it brings out alternate views and ethical frameworks.
3. Use 4C Framework (in tough cases):
Context: What is the full scenario?
Conflict: Where is the tension?
Consequence: What would each option lead to?
Compromise: Which option balances outcomes best?
How Is DM Evaluated by XLRI?
XLRI gives significant weight to the DM section:
Even a candidate with high overall percentile may be rejected if DM score is low.
Past admission trends show HRM cutoffs are lower overall but demand higher DM accuracy.
Minimum safe attempts: 17–18 Target accuracy: 75%+
XAT 2026 Decision Making: Strategy for Final Prep
Timeline | Activity |
1 month out | Start with past 5 years of DM questions |
Weekly | Solve 10–12 caselets, log decisions |
Bi-weekly | Take full mocks with DM analysis |
Last 10 days | Review solved sets, build shortcut mental models |
Conclusion
Decision Making in XAT isn’t about being right — it’s about being reasonable, ethical, and structured. B-schools like XLRI are looking for managers who can deal with ambiguity, make balanced decisions, and prioritize stakeholder interests.
With practice, reflection, and real-world thinking, this section can become your secret weapon.
FAQs
✅ Where to take the XAT exam?
You must take the XAT exam at your designated exam center, as assigned by XLRI. No center changes are allowed once the admit card is issued.
Unlike other online exams, there is no at-home test-taking option. You must appear in person at the location mentioned in your hall ticket.
Reach early, carry your ID proof and admit card, and follow the invigilator’s instructions carefully to ensure smooth conduct.
✅ Where is the XAT 2026 exam conducted?
The XAT 2026 exam will be conducted on Sunday, January 4, 2026, across numerous test cities in India. It is a national-level MBA entrance exam conducted by XLRI Jamshedpur on behalf of XAMI (Xavier Association of Management Institutes). For over 75 years, XLRI has been entrusted with conducting the Xavier Aptitude Test (XAT), helping leading Indian B-schools identify candidates with high potential for management education.
The XAT score is accepted by more than 250+ B-schools in India, including XLRI’s own programs in Business Management (BM), Human Resource Management (HRM), and the Executive PGDM. Other prominent colleges include XIMB, IMT Ghaziabad, TAPMI, IRMA, GIM, LIBA, Great Lakes, and FORE School of Management, among others.
XAT 2026 Test Cities:
XAT 2026 will be conducted in more than 80 cities across India. The exam is a computer-based test (CBT), and candidates can select their preferred test cities during the application process.
Here is the official list of test cities for XAT 2026:
North India: Delhi-NCR, Chandigarh/Mohali, Jaipur, Lucknow, Varanasi, Allahabad, Kanpur, Agra, Bareilly, Gorakhpur, Dehradun, Roorkee, Haldwani, Aligarh, Meerut, Ghaziabad, Kurukshetra, Patiala, Hisar, Ambala, Jammu, Shimla, Amritsar, Jalandhar, Ludhiana, Sikar, Sonepat, Bhatinda East India: Kolkata, Dhanbad, Durgapur/Asansol, Bhubaneswar, Cuttack, Siliguri, Guwahati, Dibrugarh, Tejpur, Jorhat, Muzaffarpur, Patna, Darbhanga, Arrah, Bhagalpur, Hazaribagh, Ranchi, Rourkela, Dhenkanal, Sambalpur, Hooghly, Kalyani West India: Mumbai, Pune, Nashik, Nagpur, Aurangabad, Kolhapur, Rajkot, Surat, Vadodara, Mehsana, Ahmedabad, Gandhinagar, Kota, Bikaner, Udaipur Central India: Bhopal, Indore, Gwalior, Jabalpur, Ujjain, Bilaspur, Raipur South India: Bengaluru, Hyderabad, Chennai, Coimbatore, Mangalore, Mysuru, Madurai, Tiruchirappalli, Tirupathi, Thiruvananthapuram, Ernakulam, Kottayam, Udupi, Kalaburagi (Gulbarga), Hubballi (Hubli), Vijayawada, Visakhapatnam, Rajahmundry, Karimnagar, Tiruvallur, Kannur, Salem Others: Goa, Naharlagun (Arunachal Pradesh), Nanded, Anantapur, Amravati
This wide spread of centers ensures that aspirants from all parts of India can appear for the exam conveniently.
Choosing Your XAT Test City:
During the application process, you can select your preferred city from the drop-down menu.
It’s advisable to apply early to improve chances of being allotted your first preference.
The final allotment will be mentioned on your XAT 2026 admit card, which is expected to be released in December 2025.
For updates on any city-level changes or additions, regularly check the official website: xatonline.in
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