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Pay Scales

 Imagine  that you manage human resources for a small business. You have recently  prepared a report on the market rate of pay for salespeople, and the  companys owner says the market rate is too high. The company cannot  afford this level of pay, and furthermore, paying that much would cause  salespeople to earn more than most of the companys managers. Why is  this a problem? Should managers automatically be at the top of the pay  scale? Suggest three possible measures the company might take to help  resolve this conflict 

 

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