Which of the following is most likely true regarding compensation systems?
A) Nonmonetary rewards tend to predominate in companies concerned with external equity.
B) External equity is easier to manage in decentralized pay systems.
C) The nine issues discussed in the text regarding compensation are interdependent with minimal influence on one another.
D) Centralized pay systems work best in large, diverse organizations.

Question

Quizplus · Accepted Answer

External equity, which involves comparing an organization's pay levels to those in the wider market, can be more challenging to manage in decentralized systems where individual managers or units have more autonomy in setting pay. Centralized systems, by contrast, can more easily ensure consistency and alignment with market rates across the organization.

Which of the Following Is Most Likely True Regarding Compensation