Which of the following factor in formulating a compensation policy, enlists the way the organizational chart looks?

Internal Organisation structure is the right answer. The way the organizational chart looks also plays an important role in formulating compensation policies for an organization. The number of unique jobs within the organization, the different levels (from executives to line staff) and the total number of staff required to meet the organization’s business goals must be taken into account when creating compensation plans. 

Option 2 in accordance with Option 1 !

Internal Organizational Structure may depend on labor law in such situation !

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I think it is : Labor Laws #(1)

It is B. - Internal Organizational Structure. 

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Hello Team,

Strategy refers to the fundamental directions of an organization. Strategies serve to guide the deployment of all resources, including compensation expenditures. But not all compensation decisions are strategic. Only those decisions that are critical to the success of the business are strategic, such as those that affect labor costs and performance. Decisions about techniques, such as which job evaluation plan to use or where to slot the compensation manager in the pay 3 structure. are probably not strategic. Policy decisions. such as linking a portion of pay increases to corporate and unit performance and detennining the competitive position in the market, probably are. We propose five basic decisions, shown in Figure 1, as a place to begin. The following decisions are considered strategic by those who manage compensation systems.

Regards,

Saiyid

1. Labor laws______________Answer