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Yes to a certain extend...The representation by employees to the top management and the decisions in this regard also may happen in case of discrepancies in decisions by HR and based on the facts considered by the top management. If HR is impartial and with no reservations for any kind of vested interest, the decisions are almost final for benefits other than based on strict formulated policies.
Yes, but as the case whenever there is a financial privileges encourage the employee to make more tender and work out what he has skills that help improve performance.