149. The Brown Tool Company is a multidivisional firm with offices throughout the country. The company sets

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14–9. The Brown Tool Company is a multidivisional firm with offices throughout the country.

The company sets the salaries of most of its positions at the central level. For example, secretaries are paid $8 per hour throughout the company. Discuss two important reasons why the firm might adopt such a policy. Discuss two important problems that the policy might cause.

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Managerial Economics And Organizational Architecture

ISBN: 9781260571219

7th International Edition

Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley

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