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 company’s 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 company’s 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
Sample Solution
