CASE-1 Oman Cement Company just received the monthly report from the Human Resources Department. The CEO was surprised to find out a high rate of employee turnover during the last few months. The HR manager stated in the report that the main reason why employees resign from the company is that they were not satisfied with their salary. Currently the company is following straight piece rate of OMR 2.5. The manager called for an emergency meeting to discuss the revision of its compensation plan for its workers. He believes that compensation is an important factor in attracting and retaining employees. Both workers and the company will benefit from a successful compensation package. The Company makes the following recommendations after extensive debate with effective financial professionals; A. Fixed salary of OMR 650 per month B. Hourly Rate of Pay (with overtime allowances) Employees will be paid on a regular hourly rate of OMR 5 for a 200-hours in a month. Overtime pay is computed time-and-a-half pay in excess of 200 hours. C. Employees will be paid on differential piece rate system based on the following schedule; Units produced Amount per unit (OMR) 0-100 4 101-200 4.5 5 201-300 Over 300 5.5 Question No.1 i) According to differential piece rate system what will be the Gross pay to Mr. Salim, who produces 90 units in a month? Is it more than the legal minimum wage that employers must offer to Omani Nationals? (2 Marks) ii) As per the differential piece rate system, if Mr. Saud produces 250 units, how much more will be his monthly earnings compared to the current rate pay? (2 Marks) iii) If Mr. Sulieman worked 240 hours in a month, suggest whether hourly rate or fixed salary is beneficial to him. (2 Marks) iv) Under the current compensation plan of straight piece rate, if Mr. Saleem produces 220 units, how much he will receive as his gross pay? (2 Marks) v) Suggest which method is the best for the employee and the company. Justify your answer. (2 Marks)