Asked by Mehki Welch on Apr 24, 2024
Verified
The two key questions that must be addressed in designing any compensation system are: a)What role should each of the three compensation components play in the compensation mix? and b)What total level of compensation should be provided?
Compensation Components
The different parts of an employee's total compensation, including base pay, bonuses, benefits, and any other form of remuneration.
Compensation Mix
The combination of different types of pay and benefits that make up an employee's total remuneration.
Total Level
Represents the complete assessment or aggregate measure of a particular aspect, such as skill level, performance level, or satisfaction level within an organizational context.
- Acquire knowledge about diverse remuneration techniques and their usage in organizations.
- Recognize the importance of legal and fiscal considerations in shaping compensation strategies.
Verified Answer
AA
Abdullah AladibMay 02, 2024
Final Answer :
True
Explanation :
These two questions are fundamental in designing a compensation system as they address the structure of the compensation (i.e., the mix of base pay, incentives, and benefits) and the overall competitiveness or level of the compensation package in relation to the market or industry standards.
Learning Objectives
- Acquire knowledge about diverse remuneration techniques and their usage in organizations.
- Recognize the importance of legal and fiscal considerations in shaping compensation strategies.