You meet up with your friends, who started their used bookstore a year ago. At the time you gave them some advice. They have still not taken any management training. They are happy in their space with high ceilings and the bookshelves built from floor to ceiling with comfortable chairs. The coffee shop has been reasonably successful, so they have decided to expand the menu into sandwiches and other small meals. These will be purchased from a neighbouring business. Their compensation plan is to pay everyone minimum wage, except the barista, who gets $2.00 an hour more. They have high staff turnover and have difficulty in getting people to work evenings and Sundays. Both of your friends choose to work Monday to Friday, 10-5, so there are no managers there on evenings or weekends. All the staff are university students, and all of them work part-time. They stay open until midnight and hire part-time staff for evenings and weekends. The money is stored in a safe overnight, and one of your friends makes the bank deposit during the day. In your answers, consider that you are speaking to your friends, so make your answers as clear and convincing as you can. Provide examples that relate to their specific situation. For question 1, you do not need to provide a bookstore example. Answer all the following questions. Each one is worth 6 marks. Your answers should be approximately 200 words long. You do not have to provide citations unless you are using a direct quote. 1. After completing this course, what is one thing other than the salary that you will consider when you are applying for a job? Why is this important to you? 2. Your friends want to increase the sales of their antiquarian material. Based on expectancy theory, what steps do you recommend they take to alter their compensation to achieve this goal? 3. Your friends decide to revise their compensation system. You recommend they determine compensable factors. Identify three compensable factors for a salesperson in the bookstore, and define low, medium, and high levels for each factor. 4. Your friends are wondering whether they should offer benefits. Given their intended recruitment of university students, do you think they should offer more money, or the same money plus benefits? Assume the cost to the business will be the same. What is your reason for this recommendation? 5. Your friends decide to compare their compensation with the local labour market. What are three kinds of businesses (other than bookstores) that they must compete with to hire salespeople? Where can they find out what these businesses pay their staff?