In which compensation management strategy are separate organizational units given the responsibility to make their...

Within compensation governance, decentralization delegates decision-making authority to separate units or business lines (e.g., pay decisions within corporate parameters). This contrasts with centralization (D), where decisions reside with a corporate function; outsourcing (A), which transfers activities to an external provider but not to internal units; and re-engineering (C), which redesigns processes rather than shifting decision authority. HRPA emphasizes aligning the level of centralization/decentralization with organizational strategy, risk tolerance, and the need for consistency vs. local responsiveness.

Relevant HRPA references (no external links): HRPA Study Guide – Compensation Strategy and Governance: centralization vs. decentralization; HRPA Competency Framework – Total Rewards: design and governance of reward programs.