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Which is a characteristic of activity-based budgeting?

An electronics/aerospace manufacturing organization specializing in drone development for the movie industry has been in business for 15 plus years. The company has just over 1,500 employees. It has sustained double-digit growth for the past four years and owns 80% of this specialized market. Based on this growth, employees have received on average a 6% increase, exceeding local wage increase rates.

Over the past year, the employee turnover rate has increased. A majority of employees who voluntarily exited the company had received exceptional performance reviews. While there is a new competitor in the market, the competitor's starting pay rates are very similar.

A recently hired HR manager reviews the exit interview data. The review identifies a perceived inequity in how disputes are resolved and the distribution of privileges, job duties, and performance rewards. Additionally, decreased attendance at company events indicates low engagement. The CEO believes strongly that good performers are leaving because competitors are "stealing" them; he does not believe that employees are leaving because of poor engagement. The CEO states that decreasing unwanted turnover is an immediate priority and directs the HR manager to increase entry salary rates to increase competiveness.

In addressing the increased turnover, what is the first action the HR manager should take?

A domestic airline rapidly gains market share through an innovative business model, a charismatic leader, a unique work environment, and sound HR practices. This has led to a global strategic plan of aggressively acquiring small local airlines in neighboring countries.

The VP of HR has been with the airline for 15 years and is an active member of its leadership team. He is a big believer in the benefits of an inclusive and multicultural workforce. This is the VP of HR's first experience with globalizing HR practices. An immediate conflict between headquarters and local policies emerges when a country HR manager raises the issue of discounted tickets for exempt U.S. management in the total rewards package. In the headquarters country, exempt management is paid on a salary basis, but in some of the new countries of operation, management is paid contractually on an hourly basis. The VP of HR is concerned that expanding the benefit globally to all management will create excessive costs and has not taken action after several requests. Frustrated, a country HR manager writes directly to the CEO about the issue, arguing that limiting this benefit may lead to legal challenges or employee relations issues that could damage the company's reputation, the work climate, and the ability to attract talent in the future.

The issue is complicated by the fact that the country HR manager is herself paid hourly as a manager.

Which method should the VP of HR use to best communicate the final policy on this matter to the organization?