Managers should execute a compensation strategy that is in line with the organizations long-term strategy and as a consequence there is no need to consider the firms ability to pay.

Question

Quizplus · Accepted Answer

It is important for managers to consider the firm's ability to pay when designing a compensation strategy. A compensation plan that is not sustainable can lead to financial difficulties for the organization in the long run. Therefore, it is essential for managers to balance the company's financial capabilities with the need to attract, retain, and motivate employees through compensation.

Managers Should Execute a Compensation Strategy That Is in Line