Which of the following statements best describes the context of compensation management within a firm?
A) All organizations need a human resources department to deal with compensation issues.
B) The larger the firm, the greater the need for compensation specialists.
C) In smaller organizations, compensation consulting firms are responsible for compensation strategy.
D) Within a large firm, all managers require extensive knowledge of compensation.

Question

Quizplus · Accepted Answer

In larger firms with more employees, there are likely to be more compensation issues to manage and a greater need for specialized personnel to handle those issues. However, compensation management is still an important aspect of HR for organizations of all sizes, and it is not solely the responsibility of outside consulting firms or limited to certain managers within a large firm. Option A and C are too extreme and not necessarily true. Option D is incorrect as not all managers need to have extensive knowledge of compensation, but HR specialists or compensation specialists in the organization should be familiar with the topic.

Which of the Following Statements Best Describes the Context of Compensation