Instructions

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.

Question 37

Under pressure from media and suppliers, Ava constituted a cross-functional committee of senior executives to investigate Dev and Sons' allegation against Bhushan. The committee exonerated Bhushan. However, rumors within the organization began to spread that the decision was influenced by nepotism.

Which of the following should be the best response from Ava?

Solution

We need a solution that will show all the employees that the decision to exonerate Bhushan was based on facts and his merit and not nepotism.

Options A, C and D, will have the opposite effect, as doing nothing and sacking the employees will increase the people’s suspicions and give rise to even more rumours.

Option B suggests forcing Bhushan to resign temporarily, but doing so will show that Ava does not have confidence in the committee’s decision.

Option E is the best among these. A town hall meeting, open to all employees, will show that the committee and Ava are not afraid to answer any questions that may arise and demonstrates their willingness to be transparent about their decision, with their employees.

Hence, option E is the answer.

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