Why do you think the compensation plansdiffer at the two firms? In particular, why doyou think Kaufmanns pays commissions tosalespeople, while Parkleigh does not?Attracting and Retaining Qualified Employees463ANALYZING MANAGERIAL DECISIONS:Structuring Compensation PlansParkleigh Pharmacy is a small department store inRochester, NY, specializing in upscale, expensivepersonal accessories (e.g., sunglasses, beauty aids,leather goods) and home decorations (e.g., crystal,china, table lamps). Kaufmanns is a large depart-ment store chain, based in Pennsylvania, with sev-eral stores in the Rochester area. Kaufmanns car-ries a broader range of products and caters more tomiddle-income consumers.Salespeople at Parkleigh are paid a straighthourly wage (i.e., no sales commissions). Inaddition, they are entitled to a 30 percent discounton anything they buy at the store. By contrast,salespeople at Kaufmanns are paid an hourly wage(lower than the hourly wage paid at Parkleigh) plusa commission of 5 percent on sales they make.They receive no
discount on products they buy atKaufmanns.1. Why do you think the compensation plansdiffer at the two firms? In particular, why doyou think Kaufmanns pays commissions tosalespeople, while Parkleigh does not? Whydoes Parkleigh offer employees discounts onpurchases, while Kaufmanns does not?2. Assume, for the moment, that neither storepays sales commissions. Parkleigh offers anhourly wage plus the employee discount. Kaufmanns offers only an hourly wage. Doyou expect Kaufmanns hourly wage to behigher or lower than Parkleighs? Why?Answer preview for the Why do you think the compensation plansdiffer at the two firms? In particular, why doyou think Kaufmanns pays commissions tosalespeople, while Parkleigh does not? essay
.apa 334 wordsClick the Purchase button now to download full answer for the Why do you think the compensation plansdiffer at the two firms? In particular, why doyou think Kaufmanns pays commissions tosalespeople, while Parkleigh does not? Page
$10.00 Purchase Checkout