The design of a total compensation system is shaped by the organizational environment.

Question

Quizplus · Accepted Answer

The organizational environment plays a significant role in shaping the design of a total compensation system. The system should be aligned with the organization's goals, external market trends, and industry norms. Factors such as company size, culture, and business strategy also impact the compensation system design. Therefore, a total compensation system must reflect the organizational environment to be effective in attracting and retaining top talent.

The Design of a Total Compensation System Is Shaped by the Organizational