Question

Eric Hansen is a receiving clerk who has just been denied a raise. He has approached his subordinate, who is the new storeroom clerk, about diverting inventory to sell for personal gain. This example of the ________, which may lead to

Answer 1

human element; collusion

Explanation:

Let us understand the act of collusion.

A secret agreement between two person or two parties to involve themselves in fraud act.

Here the situation is, the clerk has not received raise in salary. So he want to take revenge and has plan to sell the office items for his personal gain. So this is an act of collusion.

Another real life example:

A deal between supplier and retailer to increase the price illegally to have personal benefits.

Let us understand the term human element in a positive way

Human element is the organized way of approach by teams and individual to achieve organizational goals.