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International Management: T/F Compensation systems used by multinationals are typically designed and implemented to maintain compensation...

International Management:

T/F

Compensation systems used by multinationals are typically designed and implemented to maintain compensation levels that align well with competitors while also closely watching costs.

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Answer #1

The answer is true.

Compensation system is nothing but the total of monetary and non-monetary benefits that the employee receive in exchange of the job done by them. The compensation system used by multinationals have several key goals in mind. They are: -

  • Attracting and retaining the best employees.
  • To make the transfer of people to various firm location easily.
  • Compensation level should be consistent and fair for all employees.
  • The compensation levels are aligned based on the competitors' compensation level.
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