In the bottom-up approach to compensation budgeting, an arbitrary amount is allocated to compensation and given to department managers for distribution to their employees.

Question

Quizplus · Accepted Answer

In the bottom-up approach to compensation budgeting, compensation is determined by analyzing job roles, market trends, and employee performance, and then allocating appropriate amounts to departments and individual employees. It is not an arbitrary allocation.

In the Bottom-Up Approach to Compensation Budgeting, an Arbitrary Amount