The Production manager of Kakoli Furniture Company needs help with the employee turnover rate, which

has increased by $9\%$ in last year. He found that the company hadn$$t revised its salary structure for the

previous ten years, which could be a reason for this high turnover rate. Moreover, he identified that there

are two specific alternatives for the company. The first one is the company has to lower the qualifications

for the job requirement for each post so that it can maintain the present salary structure. Otherwise, it has

to change the entire salary structure by including a new pattern of incentives to uphold the performance

level of the staff.

a$)$ Now, according to the level of risk in decision$-$making, which pattern of risk is associated here? $(3$

marks$)$

b$)$ By considering all the options of decisions, what kind of planning the management is going to

apply? Single use plan or standard plan?