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Answer questions 36-38 on the basis of information given in the following situation.
Ava is the CEO of Ratan Brothers, a bicycle manufacturing company. The organization is doing well financially, with a steadily increasing share price. Recently, Ava promoted Bhushan, her nephew, to the position of head of procurement after he completed five years in the organization. After the promotion, he was automatically inducted into the quality council headed by Ava.
Dev and Sons is a supplier to Ratan Brothers. It supplies “ball bearings”, an important part of any bicycle. After Bhushan took over, he switched to a new supplier citing quality deficiencies in Dev and Sons’ product. Dev and Sons responded by publicly declaring that quality was not compromised. Further, it alleged that its competitor bribed Bhushan to get the contract.
A few months after the issue of Dev and Sons, a vigilance committee discovered some financial irregularities attributable to Bhushan in his earlier stint as a senior manager in marketing. The board of directors was concerned about this and demanded a response from the CEO.
Ava contemplated following responses:
1. Offer to resign from the post of CEO, since as the CEO she is ultimately responsible for everything in the organization.
2. Sack Bhushan immediately and make the reason public.
3. Have a town hall meeting with all the employees and deny any financial irregularities in the organization.
4. Communicate to the board that as the CEO, the organization's financial health is her top priority, on which she has delivered stellar performance in the last five years.
5. Inform the board that Bhushan was promoted because his initiatives helped the company immensely.
Which of the following sequence of actions is the most appropriate for Ava?
Here we require actions that show that some action is being taken against the accused and that someone takes responsibility for letting the wrongdoings happen.
Response 3’s suggestion of denying all the financial irregularities will cause suspicions to rise among the employees regarding the morals of Ava and the presumed nepotism that led to Bhushan’s appointment and promotion.
Response 4 tries to avoid blame by stating the good financial performance of the company.
Thus, these two options will be eliminated.
Responses 1(taking responsibility), 2(taking action against the accused) and 5(reason for Bhushan's appointment and promotion) are the most appropriate actions.
Thus option A, containing all these responses, is the correct answer.
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