Employee compensation systems are generally developed and administered by ____, and pay increases and promotions are usually recommended by ____.
A) top management; HRM specialists
B) unions; line managers
C) HRM staff; line managers
D) top management; unions
E) professional HR consultants; HRM staff personnel

Question

Quizplus · Accepted Answer

Employee compensation systems are generally developed and administered by the HRM staff, who have specialized knowledge and expertise in the area of compensation. Pay increases and promotions, however, are usually recommended by line managers who have direct knowledge of their employees' performance and contribution to the organization. Option A is partially correct as the role of top management is to approve and oversee the implementation of the compensation system. Option B is not correct as unions may have a role in negotiating compensation terms but are not typically involved in developing and administering compensation systems. Option D is not correct as unions are not normally involved in making pay increase and promotion recommendations for individual employees. Option E is not correct as professional HR consultants are not typically involved in administering compensation systems in-house.

Employee Compensation Systems Are Generally Developed and Administered by ____