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Please answer Donna has been operating a business in the US for years. Middle management employees receive about $100,000 per year. In addition she provides
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- Donna has been operating a business in the US for years. Middle management employees receive about $100,000 per year. In addition she provides a valuable health insurance policy, some dental insurance, and a pension plan. Donna has recently acquired a similar business that operates in Kenya. In the Kenyan operation employees are paid more salary (when translated using exchange rates) but they get no health or dental insurance. The pension plans are fairly similar. What factors should she examine to see if the compensation package paid to Kenyan employees needs to be changed? What would she need to know about Kenyan laws and government services?
2.Fred runs an orange grove in Ventura County. He's been paying his agricultural workers using a fixed wage of $40 per hour worked. Now he's considering reducing the fixed wage to $30 per hour with a bonus of based on the number of bushels of oranges picked. He figures that if workers work about as hard as they have been, they should get paid about the same amount. Should Fred make the change in pay scheme? Will it be more or less expensive than his original system? What other issues are relevant?
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