This approach sets salaries according to the home-country system and simply offers employees a one-time payment of money to offset differences in standards of living.

Question

Quizplus · Accepted Answer

The option given in the question refers to the lump-sum/cafeteria approach, which involves providing a one-time payment to an employee to adjust for differences in living standards between their home country and the host country. It is different from the balance sheet approach, which involves calculating the total compensation package required to maintain an employee's standard of living in the host country, and the modified balance sheet approach, which involves providing a base salary based on the host country's standards while offering additional benefits to match the home country's standards. The localization approach involves setting salaries at the same level as the host country based on the local job market's standards.

This Approach Sets Salaries According to the Home-Country System and Simply