Question: You are the human resources manager for a famous retailer, and you are trying to convince the president of the company to change the structure of employee compensation. Currently, the company’s retail sales staff is paid a flat hourly wage of $18 per hour for each eight—hour shift worked. You propose a new pay structure whereby each salesperson in a store would be compensated $8 per hour, plus five-tenths of 1 percent of that store’s daily profits. Assume that, when run efficiently, each store’s maximum daily profits are $40,000. Outline the arguments that support your proposed plan.

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