Question 1 Scenario:

In a government warehouse containing cleaning and office supplies, a warehouse workers overhears the supervisor make a deal with a distributor.  The distributor says to the supervisor, "You must bypass procurement procedures, and I'll sell you brooms at a lower price and give you a 5%commission."  The supervisor is tired of paperwork and agrees, but does not realize that the worker heard the conversation.

What should the worker do?  How can this behavior be prevented?  How does organizational structure enter into this scenario?

Question 2: 

 A friend of yours buys an old car for $500, although two mechanics have said the car is old and shot.  After two weeks, the car stops running, but your friend decides to invest $200 to repair it because of the $500 already invested. One month later, your friend needs to decide whether to spend another $300 on the car so that it will pass a safety inspection.  Again, the decision is made to proceed because of not wanting to lose the $700 now invested in the car.  As graduation nears, your friend thinks about buying a new car and has the old car appraised. Both the dealer and the bank say the old car, in which your friend has invested a total of $3200, is worth no more than $500.  What principle from the textbook could you use to explain how this discrepancy occurred, why it occurs, and how the problem could have been avoided?

3. In The News: Read the daily paper or recent publication of a current events magazine. After reading, find an article of interest to you that can be applied to the principles and theories related to Decision Making, Knowledge Management, & Innovation in Organizational Behavior and discuss the article you read in 200 words or more.