Which of the following is not a likely consequence of a highly decentralized pay system?
A) Total labor costs would be reduced
B) Pay rates would be very unsystematic
C) Managers would use pay to motivate their own objectives
D) Employees are likely to be treated unfairly

Question

Quizplus · Accepted Answer

A highly decentralized pay system means that different managers in different parts of an organization have the authority to set pay rates for their own employees. This can result in pay rates that are inconsistent across the organization. However, it is unlikely that total labor costs would be reduced because decentralized pay decisions may not be made with a comprehensive understanding of the organization's overall labor costs. Option B and C are likely consequences of a highly decentralized pay system. Only option D is not a likely consequence because decentralized pay does not necessarily lead to unfair treatment of employees, but rather inconsistency in pay rates.

Which of the Following Is Not a Likely Consequence of a Highly