A Possible Side Effect of a Decentralized Pay Structure Is

question 36

Multiple Choice

A possible side effect of a decentralized pay structure is that:

• A)it may be difficult to transfer employees from one business unit to another
• B)there is decreased potential for pay discrimination
• C)there is decreased opportunity for the inconsistent treatment of employees
• D)pushing responsibilities and expenses close to the units, managers, and employees affected by them may cause doubt that decisions are business related
• E)organizations require larger compensation staffs

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Definitions:

Profit Center

A distinct segment of a business that is responsible for generating its own revenue and profit, enabling better tracking of financial performance.

Value-Adding Activity

Any action or process that increases the worth of a product or service to customers, making it more desirable or enhancing its quality.