ACTUAL QUESTIONS AND CORRECT
ANSWERS
vfd - CORRECT ANSWER MHR Final Case Studies
P.378 Pay Decisions at Performance Sports
A small business is created by Perkins. She has 16 employees with established hourly wages.
She is interested in creating a new position, purchasing agent. She doesn't know what she
should pay them. At a convention she heard about the pay-per-performance basis. This is a
priority because some of her current employees are unhappy with their wages.
Decisions at Performance Sports (1)
What factors should be considered when setting the wage for the purchasing agent
position?...Where can one get this information?
What are the advantages/disadvantages of a pay-for-performance for Performance Sports?
Can you recommend a new payment plan for customer service representatives?
Pay Decisions at Performance Sports (2)
Factors to consider in setting the rate:
`Going rate' for purchasing agents
Level of experience
Is the labor market `tight' or `loose'
Person's current wage & amount needed to lure person to Performance Sports
Pay Decisions at Performance Sports (3)
Sources of information
Published federal & state wage surveys
Professional associations
Call other employers
Pay Decisions at Performance Sports (4)
Pay-for-Performance