When Administering a Compensation Program

question 39

Multiple Choice

When administering a compensation program:

• A) actual pay rates should not be shared outside of the human resources department.
• B) open pay systems support the notion that compensation is too complicated to try to explain to employees and should be kept confidential.
• C) managers who make compensation decisions must receive training on the process and how they should communicate about compensation.
• D) reviewing external market data and internal alignment every five years would be sufficient.
• E) changes should be made when employees raise questions and after careful market surveys have been completed rather than updating for the sake of updating.

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Definitions:

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Global Convergence

The process by which ideas, goods, and services spread and integrate across different cultures and countries, leading to increased similarity.

Infrastructure Development

The construction and improvement of foundational services and facilities such as roads, bridges, water supply, and electricity networks that are necessary for economic development.

Raw Materials

The basic materials from which products are manufactured or made, typically extracted from the natural environment.