The Development and Administration of a Company's Compensation System Is

question 89

Essay

The development and administration of a company's compensation system is primarily the responsibility of the HRM department. Explain.

---

Definitions:

Functional Structures

An organizational design that groups employees based on their roles or functions, enhancing specialization and efficiency.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the output increases, the per unit cost decreases.

Superordinate Goals

Shared goals that can only be achieved through the cooperation of two or more parties, often used to overcome intergroup conflict.

Formal Hierarchy

The structured organizational layout that defines the levels of authority, responsibility, and communication within an organization.