A compensation system focusing on system control and work specifications is most closely associated with a(n) _____ strategy.
A)innovator
B)customer-focused
C)cost-cutter
D)differentiated

Question

Quizplus · Accepted Answer

A compensation system that focuses on system control and work specifications is typically used in a cost-cutter strategy, where reducing costs and increasing efficiency is a priority. The emphasis is on standardization and reducing variation in work processes to achieve cost savings. This approach is less commonly used in innovator or customer-focused strategies, which prioritize innovation and customer needs over cost savings. Differentiated strategies focus on creating unique products or services that set the company apart from competitors, so a compensation system emphasizing system control and work specifications is not as relevant.

A Compensation System Focusing on System Control and Work Specifications