Compensation Is One of the Organization's Largest Expenditures

Multiple Choice

Compensation is one of the organization's largest expenditures. Compensation philosophies and systems vary from one organization to the next. Which of the following statements explains why?

A) Different organizations have different organizational objectives and strategies.
B) Organizations depend heavily on consultants to design their compensation systems, and each consulting firm has its own system. These systems are relatively interchangeable.
C) There is no "one right way" to compensate employees. Many systems will work equally well in any organization.
D) Legal requirements mandate different types of compensation systems depending on the organization's industry and whether it is in the public or private sector.