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(solution) Analyze the short case below and recommend a new compensation
Analyze the short case below and recommend a new compensation system. Make certain you clearly explain your reasoning, including explanations of relevant motivation theories and concepts.
Based on REVIEW QUESTION #3, page 378 of the textbook
You own a high-tech tool coating company specializing in the cutting of coating tools (drill bits, cutting blades) to extend the life of the tools. You are concerned that your competitors are developing new coating methods and new applications for different industries. You want to create a work environment where employees suggest ideas for new methods and applications. What type of compensation plan would you recommend and how would it work for this situation? What are some of the problems you need to be aware of?
Book: Compensation, Twelfth edition. Author: JERRY M. NEWMAN, BARRY GERHART, GEORGE T. MILKOVICH
New compensation system
The new compensation system for this situation must be able to create balance between
rewards and risk related to the work. People are asked to come up with innovative ideas...
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