What type of total rewards approach has Fresh Munchables likely taken by allowing managers to manage their departments?

The choice of a decentralized approach is correct because it highlights the empowerment of immediate supervisors to make decisions regarding rewards tailored to their specific departments. In a decentralized total rewards system, management delegates authority to lower-level managers, who then have the flexibility to adjust compensation, bonuses, and benefits based on the unique needs and performance of their teams. This approach can lead to more effective and engaging reward systems since managers can align rewards with the motivations and performance levels of their employees, fostering a more responsive and adaptable organizational climate.

For instance, if one department is facing high turnover and another has high employee satisfaction rates, supervisors can respond accordingly by adjusting incentives and rewards that meet the varying demands of their teams. This direct involvement of managers can create a more personalized and motivating work environment, enhancing overall employee engagement and productivity.