Why is a bottom-up approach for compensation budgeting favoured by the textbook author?
A) Its simplicity is advantageous.
B) It supports the strategic pay notion.
C) It fits with other strategic aspects of the organization.
D) It is more compatible with new human resource information systems.

Question

Quizplus · Accepted Answer

The textbook author favours a bottom-up approach for compensation budgeting because it supports the strategic pay notion, which aligns compensation with organizational strategy and goals. This approach involves gathering information from employees, managers, and other stakeholders to determine pay needs and preferences, which in turn informs compensation decision-making from the bottom up.

Why Is a Bottom-Up Approach for Compensation Budgeting Favoured by the Textbook