Asked by Chandler Hirsh on Sep 23, 2024
Verified
The design of a total compensation system is shaped by the organizational environment.
Total Compensation System
The complete package of financial and non-financial benefits provided to employees, including salaries, bonuses, health insurance, and retirement plans.
Organizational Environment
The sum of internal and external factors that affect an organization's operation, including economic, technological, social, and political influences.
- Master the ideas underlying total compensation and its segments.
- Comprehend the impact of organizational and market factors on compensation design and strategy.
Verified Answer
MI
Maryam Islamabout 15 hours ago
Final Answer :
True
Explanation :
The organizational environment plays a significant role in shaping the design of a total compensation system. The system should be aligned with the organization's goals, external market trends, and industry norms. Factors such as company size, culture, and business strategy also impact the compensation system design. Therefore, a total compensation system must reflect the organizational environment to be effective in attracting and retaining top talent.
Learning Objectives
- Master the ideas underlying total compensation and its segments.
- Comprehend the impact of organizational and market factors on compensation design and strategy.