KCM & Associates, an international management consulting firm, uses a market pay survey to gather information regarding the going rates of pay among competing organizations.To that the company gets the best talent available, the compensation management department uses the information obtained from the market pay survey to compare its compensation policies with those used by the competitors. In this example, KCM & Associates uses which of the following techniques?
A)Offshoring
B)Delayering
C)Forecasting
D)Job evaluation
E)Benchmarking

Question

Quizplus · Accepted Answer

To compete for talent, organizations use benchmarking, a procedure in which an organization compares its own practices against those of the competition. In compensation management, benchmarking against product market and labor market competitors is typically accomplished through the use of one or more pay surveys, which provide information on going rates of pay among competing organizations.

KCM & Associates, an International Management Consulting Firm, Uses a Market