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The Well Paid Receptionist Case Analysis

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The Well-Paid Receptionist Case Analysis
Harvey hired the very qualified Cathy Brannen seven years ago for an annual salary of $14,000 and the incentive of sales override of 2% of the total sales. Today, Harvey just realized that his secretary has been living very comfortable with $127,614.21 this year. Harvey cannot believe the situation and wants to address her salary, which he feels is inappropriate, but has not considered his contributions, or lack of contributions, that has led to this outcome (Cohen & Fink, 2001). A Bloated Salary and an Oblivious Leader
Cathy has been making a significant amount for some time, refer to Table 1. There have been significant raises each year and should have been caught by Harvey or the comptroller long before her 7 year anniversary. Why was there a lack of due diligence that allowed this to not be noticed more promptly? Why were no complaints brought forward by other employees? Is this an isolated case or other employees making significant salaries as well?
Cathy is making significantly more than Harvey’s best salespersons and managers, almost as much as Harvey and extremely higher than any receptionist’s salary (Cohen & Fink, 2001). The problem does not lie with just overlooked financial, payroll documents but Harvey’s lack of participation in the financials of his business. When Harvey hired Cathy, he could not offer her requested salary, and even made an offer that was 12% lower than her previous salary, but Harvey needed the

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