1. What are the specific problems with Marilyns cur-rent compensation program? Marilyn Brown started her chain of 10 wedding bou-tiques approximately five years ago. She presently oper-ates within southwestern Ontario and has been enjoying record profits. Marilyns wedding boutiques provide full-service amenities to future brides, including wedding planning services, custom fittings, and locating hard-to-find wedding dresses.

Marilyns customer service philosophy is that cus-tomers are number one and must be satisfied with their purchases. However, recently there has been a rise in complaints regarding the lack of friendly service being provided, and three long-standing employees have threatened to leave unless their compensation is adjusted in response to servicing Marilyns very demanding cli-ents.

Currently, Marilyn pays all of her staff the same base salary of $14 per hour without any benefits