The executive department at Fresh Munchables has decided to

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The executive department at Fresh Munchables has decided to...

The executive department at Fresh Munchables has decided to completely change the company's current compensation system. They are considering implementing the same compensation system used by a similar food company that has been extremely successful. However, Fresh Munchables' compensation team strongly disagrees with this idea.

1) Why would it be a bad idea for the company to use another company's system as opposed to creating its own compensation system?

A. Creating an effective compensation system will require you to have a clear understanding of your own company's management system and culture.

B. Creating an effective compensation system will require you to have a clear understanding of your own company's total equity and value.

C. Creating an effective compensation system will require you to have a clear understanding of your own company's employees and what they have traditionally been paid.

D. Creating an effective compensation system will require you to have a clear understanding of your own company's rewards and how it competes in the market.

Because Fresh Munchables has grown so much since its inception, the CEO wants to revisit the company's methods for establishing internal reward alignment. The executive team has advised the HR department to use a job classification approach. However, you disagree.

2) What information could you use to show the executive team one primary disadvantage of using a job classification approach?

A. It is difficult to hire qualified employees because the recruitment and selection process becomes more generalized.

B. It is impossible to assign value to each job without first analyzing how other companies have valued similar jobs.

C. It is difficult to create distinctions between jobs as the number and types of jobs in an organization grows.