For almost a year, OK Company has been changing its manufacturing processes. Management has asked for employees

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For almost a year, OK Company has been changing its manufacturing processes. Management has asked for employees’ assistance in the transition and has offered bonuses for suggestions that cut time from the production operation. Jim Han and Jerome Smith each identified a time-saving opportunity and turned in their suggestions to their boss.
The boss sent the suggestions to the committee charged with reviewing employees’ suggestions, which inadvertently identified them as being the boss’s own. The committee decided that the two suggestions were worthy of reward and voted a large bonus for the boss. When notified of this, the boss could not bring himself to identify the true authors of the suggestions.
When Han and Smith heard about their boss’s bonus, they confronted him and expressed their grievances. He told them that he needed the recognition to be eligible for an upcoming promotion and promised that if they kept quiet about the matter, he would make sure that they both received significant raises.

Required
1. Should Han and Smith keep quiet? What other options are open to them?
2. How should their boss have dealt with Han’s and Smith’s complaints?

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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