Explore BrainMass

Broadbanding in Compensation.

Can you please help me answer the following question based on the attached information (Word document):

- What is broadbanding? What are its benefits and drawbacks to an organization the size of Short Smith?

- Provide a private-sector (business) example: an organization with a broadbanding pay system and whether or not it works for them.

- Do you recommend that Short Smith develop a broadbanding system? Why or why not? If not, what type of system do you recommend?

- Provide some concluding statements on managing a change to a new pay system at Short Smith.

As you formulate your response you might need to make reasonable assumptions for information not clarified in the assignment. If so, please state your assumptions in the beginning of your paper.


Solution Preview


Step 1
Broad banding is job gaining that is not spot salaries vs many job grades to find out what to pay for particular positions. Broad banding reduces the stress on hierarchy and gives more importance on lateral job movement. The number of salary grades is consolidated into fewer but broader, pay ranges. The purpose of broad banding is to reduce the number of hierarchies and move decision making closer to the point of decision making. Broad banding reduces the opportunities for promotions but allows employees to get pay increases and career growth without promotion. An organization the size of Short Smith can benefit from broad banding. It will help reward performance more efficiently, broad banding will enable a more streamlined performance evaluation, and Short Smith will be able to change the size of its workforce. The drawbacks of ...

Solution Summary

This solution explains the benefits and drawbacks of broad banding - a step by step solution is provided. The sources used are also included in the solution.