Human Resource Management

Pay Scales

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 companys 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 companys 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