Describe the concept of a pay structure, including broadbanding and delayering.
What will be an ideal response?
A pay structure is created by laying out our pay levels, one next to the other. The entire group of pay levels creates the pay structure. Benchmark jobs can be plotted on the pay structure to get a market pay line—a line that shows the average pay at different levels in a particular industry. Once pay levels are set, we can actually plot employee rates of pay on the pay structure to see if any are plotted outside our pay level ranges, either high or low. Individuals who fall outside our pay range to the high side are paid red-circle rates, and those who fall outside low are paid green-circle rates. Each of these rates should be reviewed and corrected if necessary. Broadbanding lowers the number of pay levels that a company administers by combining multiple pay levels into one. Lowering the number of pay levels makes the process simpler. It takes a long time to create, maintain, and evaluate many pay levels, but instead, we can have just a few broadbands. Because pay bands are wider and taller under broadbanding, the company also has more flexibility in pay rates for individuals who are overperforming or underperforming. Broadbanding may also cause most red- and green-circle rates to disappear. Delayering also lowers the number of pay levels, but it does so by getting rid of layers of vertical hierarchy in the organizational structure.
You might also like to view...
________ are customers who show low potential profitability and little projected loyalty
A) True friends B) Barnacles C) Strangers D) True believers E) Butterflies
Which of the following is NOT a question you should ask yourself when assessing your use of statistics?
a. Are the statistics representative of what I claim they measure? b. Am I being totally honest in my use of these statistics? c. Have I used statistics sparingly? d. Are the statistics I used convincing?
Assemble-to-order strategy produces a wide variety of products from relatively few assemblies and components after orders are received
Indicate whether the statement is true or false
A home improvement firm has quoted a price of $9,800 to fix up Eric's backyard. Five years ago, Eric put $7,500 into a home improvement account that has earned an average of 5.25% per year
Does Eric have enough money in his account to pay for the backyard fix-up? A) Yes; Eric now has exactly $9,800 in his home improvement account. B) No; Eric has only $9,687 in his home improvement account. C) Yes; Eric now has $10,519 in his home improvement account. D) There is not enough information to answer this question.