The Brown Tool Company is a multidivisional firm with offices throughout the country. The company sets the
Question:
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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The company might set the rate centrally because it reduces ag...View the full answer
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Related Book For 
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
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