Critical Thinking Activity: Module 12

Question 1

1. Review the organizational charts shown in Figures 12-4 through 12-7. Who should be in charge of the company at this moment, in your opinion? Why do you think that person is not now acting for the board?

Question 2

2. Who decides which executive should take charge when senior managers are lost? Is that answer different in the short term than in the long term?

Answer 2

The decision on who takes charge when senior managers are lost may vary depending on the company’s policies and the circumstances surrounding the loss. In the short term, someone who is already familiar with the company’s operations may be appointed to take charge, while in the long term, an extensive search may be conducted to find the most qualified candidate for the job.

Question 3

Ethical Decision Making

Clearly, Jake Blues may already know some of the candidates for the positions he needs to fill, based on the company’s organization chart and his own business experience. How can he mitigate the risk of actual or perceived conflicts of interest as he makes contacts and begins choosing the future executives?

Answer 3

Jake Blues should follow these ethical guidelines:

Disclose any potential conflicts of interest that may arise during the selection process.

Recuse himself from the selection process if he has any personal or financial interests in any of the candidates.

Conduct a fair and transparent selection process that is based on the qualifications and merits of the candidates.

Document the selection process and the rationale behind each decision made to demonstrate that the process was fair and impartial.

Seek input from other members of the board and relevant stakeholders to ensure that the selection process is objective and unbiased.