Which of the Following Statements About the Compensation System Is

question 17

Multiple Choice

Which of the following statements about the compensation system is false?

• A) An effective compensation policy seeks to eliminate all pay inequity between an expatriate and his/her local peers.
• B) The implementation of a compensation system may necessarily be different in countries less accustomed to pay for performance and individual rewards.
• C) An assignment in a difficult environment, such as much of Africa, would require greater compensation than an assignment to a more developed environment like Western Europe.
• D) It has been estimated that, on average, expatriates cost employers two to five times as much as corresponding home-country employees, and even higher in some lower-wage countries.

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Definitions:

Differentiation

The process of identifying and emphasizing the unique characteristics or features of a person, product, or organization.

Integration

The process of combining or coordinating separate elements or groups into a unified whole, often seen in organizational, social, or technological contexts.

Horizontal Differentiation

A structural feature of an organization that involves the division of labor and the specialization of tasks horizontally across departments.

Centralization

The accumulation of decision-making power at the higher echelons of an organization.