Four variable contextual factors for determining the appropriate degree of emphasis on a global versus local perspective in designing compensation systems include heterogeneity, pervasiveness, strength of enforcement, and
A)regulatory enforcement.
B)demographic composition.
C)formalization.
D)divergence.

Question

Quizplus · Accepted Answer

Formalization refers to the degree of consistency and structure in policies and procedures across different locations. The more formalized a company's policies and procedures are, the more likely it is that a global perspective would be appropriate in designing compensation systems. Therefore, formalization is one of the contextual factors that needs to be considered.

Four Variable Contextual Factors for Determining the Appropriate Degree of Emphasis