Question :

For roughly a year, WEST Company has been changing its manufacturing process from a traditional to a JIT approach. Management has asked for employees' help in the transition and has offered bonuses for suggestions that cut time from the production operation. Jerome Obbo and Don Hanley each identified a time- saving opportunity and turned in their suggestions to their manager, Sam Knightly.

Knightly gives the suggestions to the committee charged with reviewing employees' suggestions, which inadvertently recognized them as being Knightly's own. The committee decided that the two suggestions were worthy of reward and voted a large bonus for Knightly. When notified of this, Knightly would not bring himself to check the true authors of the suggestions.

When Obbo and Hanley heard about Knightly's bonus, they confronted him with his fraudulent act 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 could make sure that they both received important raises.

Should Obbo and Hanley keep quiet? What other options are open to them? How should Knightly have dealt with Obbo's and Hanley's complaints?