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8:07 56 E Open App . . . A New Compensation Pro- gram to Motivate Performance Marilyn Brown started her chain of 10 wedding boutiques approximately five years ago. She presently operates within southwestern Ontario and has been en- joying record profits. Marilyn's wedding boutiques provide full-service amenities to future brides, including wedding plan- ning services, custom fittings, and locating hard-to-find wedding dresses. Marilyn's customer service philosophy is that customers are number one and must be satisfied with their purchases. Howev- er, recently there has been a rise in com- plaints regarding the lack of friendly ser- vice being provided, and three long- bookshelf.vitalsource.com C8:08 55 Open App . . . plaints regarding the lack of friendly ser- vice being provided, and three long- standing employees have threatened to leave unless their compensation is adjust- ed in response to servicing Marilyn's very demanding clients. Currently, Marilyn pays all of her staff the same base salary of $18 per hour without any benefits. Marilyn feels that this approach promotes equity and eliminates any perceptions of favouritism between employees regarding compensation. Since receiving the negative complaints and the threats of some of her staff leave ing, Marilyn has decided she needs to re- think her compensation philosophy, and she needs your help. bookshelf.vitalsource.com C8:08 55 E Open App . . . and the threats of some of her staff leave ing, Marilyn has decided she needs to re- think her compensation philosophy, and she needs your help. Questions 1. What are the specific problems with Marilyn's current compensa- tion program? 2. Discuss the types of compensa- tion programs and plans available to Marilyn to motivate and retain her existing staff. 3. Should Marilyn use only one type of compensation plan, or a combi- nation plan for her employees? Discuss your recommendation in detail.