Question

Which statement best describes the context of compensation management within a firm?

a. in smaller organizations, compensation consulting firms are responsible for compensation strategy.
b. within a large firm, all managers require extensive knowledge of compensation.
c. the larger the firm, the greater the need for compensation specialists.
d. all organizations need a human resources department to deal with compensation issues.

Answer 1

The larger the firm, the greater the need for compensation specialists.

Step-by-step explanation:

The statement that best describes the context of compensation management within a firm is option C: the larger the firm, the greater the need for compensation specialists.

As a firm grows in size, it becomes more complex and has a larger workforce, which necessitates specialized roles to handle compensation effectively.

Compensation specialists are responsible for developing and implementing compensation strategies, conducting market research, analyzing job roles, and ensuring fair and competitive pay practices within the organization.