8-1.Respond to the following statement: “Pay grades limit a company’s ability to achieve competitive advantage.” Do you agree? Provide rationale for your position.
8-2.Two employees perform the same job, and each received exemplary performance ratings. Is it fair to give one employee a smaller percentage merit because his pay falls within the third quartile but give a larger percentage merit increase to the other because his pay falls within the first quartile? Please explain your answer.
8-3.Describe some ethical dilemmas sales professionals may encounter. How can sales compensation programs be modified to minimize ethical dilemmas?
8-4.React to the statement: “Merit pay grids have the potential to undermine employee motivation.” Please discuss your views.
8-5.Compression represents a serious dysfunction of pay structures. Discuss some of the major ramifications of compression. Also, discuss how companies can minimize or avoid these ramifications.