You recently transferred from a smaller manufacturing firm to a larger one and discovered that,although entirely different,both compensation systems are effective.How is this possible?
A) Both companies have well-trained managers.
B) Both companies do similar work and hire the same kinds of employees.
C) Both systems fit the organization and its strategy.
D) Both provide compensation packages that lead the marketplace.

Question

Quizplus · Accepted Answer

The effectiveness of a compensation system depends on how well it aligns with the organization's goals and strategy. If both companies have designed their compensation systems in a way that supports their unique business models and objectives, then it is possible that both systems can be effective, even if they are different. Factors like well-trained managers and competitive market rates may also play a role in compensation effectiveness, but they're not the only determinants.

You Recently Transferred from a Smaller Manufacturing Firm to a Larger