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For this assignment, let's do further analysis on managing compensation. Please read Case Study #1 on page 366 then answer the questions presented there. Note that question 1 actually has two questions. Identify your answers with 1a,1b,2, and 3 . Be sure to be thorough in your answers incorporating everything relevant that we've learned so far. Recall that in this chapter, we learned about various specific compensation plans. I expect to see some of them incorporated into your answers here. You know by now that each question will require at least one paragraph and I do expect you to proofread your work before you submit it. Katie Perkins's career objective while attending Rock- a general manager with a wage of $16.75 per hour. ford State College was to obtain a degree in small busi- Both the manager and the assistant manager are forness management and to start her own business after mer customer service representatives. graduation. Her ultimate desire was to combine her Perkins intends to create a new managerial posilove of sports and a strong interest in marketing by tion, purchasing agent, to handle the complex duties of starting a mail-order golf equipment business aimed purchasing golf equipment from the company's numerspecifically at beginning golfers. ous equipment manufacturers. Also, the mail-order After extensive development of a strategic busi- catalog will be expanded to handle a complete line of ness plan and a loan in the amount of $75,000 from tennis equipment. Since the position of purchasing the U.S. Small Business Administration, Performance agent is new, Perkins is not sure how much to pay this Sports was launched. Based on a marketing plan that stressed fast delivery, error-free customer service, yearsofexperienceinsportsequipmentpurch rapidly. Currently, the company employs 16 people: convention in Las Vegas, Nevada, Perkins learns that a 8 customer service representatives earning between competitor, East Valley Sports, pays its customer ser$11.25 and $13.50 per hour; 4 shipping and receiv- vice representatives on a pay-for-performance basis. 2clericalemployeeseachearning$8.25perhour;anassistantmanagerearning$15.25perhour;andtheprosandconsofthispaymentstrategy.Thisrequestasksherassistantmanager,GeorgeBalkin,toresearch has become a priority because only last week two cus- position? What resources are available for them tomer service representatives expressed dissatisfaction to consult when establishing this wage? with their hourly wage. Both complained that they felt 2. Suggest advantages and disadvantages of a payunderpaid relative to the large amount of sales revenue for-performance policy for Performance Sports. each generates for the company. 3. Suggest a new payment plan for the customer service representatives. Questions 1. What factors should Perkins and Balkin consider when setting the wage for the purchasing agent