You have been asked to explain to a manager the notion of structural variables within the context of a strategic framework for compensation.Which variable would you elaborate on?

A) how work is divided into subtasks
B) the market the company serves
C) the level of differentiation in the products and services offered by the company
D) the company's products' life cycle

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Lance David · Accepted Answer

Final Answer : A, Explanation :  Structural variables refer to the way work is organized and divided into subtasks within a company. This includes factors such as job design, organizational structure, and hierarchy. It is an important consideration when developing a strategic framework for compensation as it affects the level of skill required for each job, the level of autonomy employees have, and the level of interdependence between employees. Understanding the structural variables can help determine the appropriate pay structure and levels for each position within the company.

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