Mr Mohan, an MBA with specialisation in Human Resources joined a company XYZ into the business of garments in Delhi. Before joining the company XYZ, he had prior experience of working in corporates for 5 years. He has worked in the area of compensation dealing with workers and employees. In the company XYZ, Mr Mohan was entrusted with the work of dealing with both workers and executives and look towards their compensation and remuneration. Mr Mohan has to be abreast with the latest rules of compensation both in theory and as prescribed by the government of Delhi. The company XYZ believed in both types of benefits to be given to their employees – both workers and executives – fringe benefits and non-fringe benefits. For executives, the company XYZ believes in equity both within the company and outside also. All policies of the company XYZ relating to compensation management were told to Mr Mohan and he has to follow them objectively.

Q. Executives ask the company XYZ to give them perquisites and Mr Mohan has to decide. Out of the following which one is the prerequisite?