Government is a key stakeholder in compensation decision making.Question 13Answera.TRUEb.FALSE

Government's Role in Compensation Decision Making

1. Understanding Stakeholders:

   • Stakeholders are individuals or organizations that have an interest in the decisions made by a company or an entity. In the context of compensation, stakeholders can influence and are influenced by how employees are paid.

2. Government's Influence:

   • Governments set minimum wage laws, regulate overtime pay, and enforce labor laws aimed at protecting workers' rights. This means they play a crucial role in determining compensation structures within businesses.

3. Regulatory Framework:

   • Governments establish tax regulations, social security contributions, and compliance requirements which directly impact how companies determine their compensation packages.

4. Conclusion:

   • Given the above points, it is clear that the government is indeed a key stakeholder in compensation decision making.

Final Answer

True.