Reference no: EM133096442

Imaging your friend has decided to open a used bookstore. They have little experience with running a business, so you are trying to help them figure out their compensation strategy. Your friend is planning to hire part-time university students for sales staff, as well as a permanent accountant, and a permanent manager. Your friend dislikes spending money and is always looking for the cheapest way to do things. All your examples need to refer to this situation.

For each below question:

• Define the term that is in bold. 
• Explain the reasons for your recommendations. 
• Provide an example to support your recommendation

1. You recommend that student employees should get a higher hourly amount instead of benefits, using Maslow's Hierarchy to support your explanation.
2. To manage costs and encourage sales, your friend would like to adopt a piece rate strategy. They intend to pay salespeople $5 for each book sold, with no base pay. You recommend an hourly base pay strategy instead.
3. Your friend believes that because the business will be very small, and not very profitable, they do not need to worry about legislation. You recommend that they follow the Employment Standards Act. Identify at least three issues in this act that they need to pay attention to.
4. You recommend that your friend check similar jobs in the Edmonton area with market comparator firms. Your friend thinks that other bookstores pay too much, and they would rather compare with small businesses such as convenience stores in rural areas.
5. Your friend would like to pay male salespeople .50/hour more than female employees because they will be stronger and need to lift boxes of books. You recommend that they pay male and female salespeople the same because of pay equity.
6. You realize that your friend does not know much about compensation and how to manage payroll, so you recommend outsourcing to an HR company.