In Designing Compensation Systems, What Does the Philosophy of "Thinking

question 57

Multiple Choice

In designing compensation systems, what does the philosophy of "thinking globally and acting locally" mean?

• A) Expatriates should be rewarded primarily for their local actions.
• B) Pay plans should be originated at the local level but global organizational issues should be considered in pay plan development.
• C) Expatriates should be rewarded for their local actions as well as their performance that impacts the entire organization.
• D) Pay plans should be designed to support the overall strategic intent of the organization and also provide enough flexibility to customize certain policies to meet the needs of employees in specific locations.

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Definitions:

Institutional Adaptation

The process by which institutions evolve and adjust to changes in their environment, maintaining or enhancing their functionality.

Structural Adaptation

The process by which an organization changes its structure to respond to external or internal pressures.

Internal Integration

The process of ensuring that the various elements within an organization, such as departments and teams, work together seamlessly towards common objectives.

Observable Culture

Aspects of an organization's culture that can be seen or experienced directly, such as rituals, dress codes, and physical layouts.