Thanks for posting
Carlystern!
This is a challenging
Conditional Grouping game, and it's made more challenging by the fact that it has a contraint on the size of the team - at least four must be on the team! We need to set up a logic chain to sort out all this conditional information.
Check out the set up!

This contains all of the rules we have in the game in one place.
The next thing we should notice is that this is a conditional question - great! So we know that Y is in the OUT group. We also know that Y being out will trigger W being out. Nothing else gets triggered yet. We have W and Y in the OUT group, and nothing else is known.
Now, the question says that all of the following could be on the team EXCEPT someone - so 4 of the answers are perfectly fine, and one of the answers is a
rule violator. How are we going to find our rule violator? Y and W being out don't trigger anyone else, so there's no direct rule violation from the chain.
But wait! We have to have at least 4 people on the team. And that means we can't have any MORE than 4 people in the OUT group. (If we did, the team would be too small.) And we already have 2 people out (Y and W). So, if there's an employee who kicks a bunch of people OUT, then that could break the
numerical rules!
M kicks a ton of people out! Let's follow the chain if M is included on the team:

Ouch!
M kicks out three people. Adding that to our original Y and W would mean that we'd have five people in the out group. We can't have that, as our team would be smaller than 4!
M cannot possibly be on the team in this hypothetical, so
(E) must be the answer.
A quick comment on the other answers:
(A) Z is a free agent. He can always be included!
(B) T being included doesn't trigger anything. Seems fine!
(C) P being included would kick out M, but that's ok - OUT group would have (M, Y, W), and that's not too many.
(D) O being included would also kick M out, and just like in (C), that's ok - OUT group would have (M, Y, W), and that's not too many.
Does that help clear this question up a bit?