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    Higgins Tool Coating Company

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    1. You own Higgins Tool Coating Company, a high-tech firm specializing in the coating of cutting tools (e.g., drill bits, cutting blades) to provide longer life before re-sharpening is needed. You are concerned that the competition continues to develop new coating methods and new applications of coating in different industries. You want to create a work environment where employees offer more new product ideas, and suggest new industries where these ideas might be applied. What type of compensation plan will you recommend? What are some of the problems you need to be aware of?

    2. Angela Lacy, an African-American employee in your accounts receivable department, has filed a charge of discrimination, alleging she was unfairly passed over for promotion and regularly receives smaller pay increases than do employees who perform less well (she alleges). You have to go to your boss, the VP of HR, and explain what elements of your HR system can be used in your legal defense. What things do you hope you did in setting up and administering your systems to counter this discrimination charge?

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    Solution Preview

    Question #1) Providing a work environment that offers professional development will help the employees to grow personally and professionally. You can offer a reward program for suggesting new product ideas and/or ways to increase productivity or perhaps decrease company production costs and/or promote saftey (if that may be the case ...

    Solution Summary

    Compensation plan and discrimination efforts are explained below in 218 words.