Broad Banding

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Kimberly Maunz
Unit 5 Assignment 1
May 15, 2011

States a position on whether broad banding can be successfully competitive in selected work environment.

Broad banding is known for taking different salary grades and combining them into only a few different bands with bigger ranges usually resulting in one minimum wage and on maximum wage for the band, these bands usually include a wide variety of various jobs it is hard to establish a midpoint (Milkovich, Newman, & Gerhart, 2011).

Using broad banding as a compensation plan most definitely has not only its advantages for companies and employees but has disadvantages for companies and employees that go hand in hand with the advantages.

Advantages of utilizing broad banding include but are not limited to: * Allows the company more room in determining job duties and responsibilities * Job descriptions are broader therefore, not signaling any specific position with specific responsibilities * Reduces the number of levels of positions therefore, removes some of the more hierarchy structure that some companies have * Allows employees to get a feel for different roles without having to initiate either a promotion or a demotion in order to expose the employee to the different job roles * Gives more authority to managers to establish pay wages by removing the pay restrictions that are usually overseen by HR (Dance, 2011) * Helps develop different job skills among a group of employees * Acts as a sense of employee training, by employees having the opportunity to experience other roles within the band this helps establish more opportunities for employees to grow and develop due to experience in other areas within the company (Milkovich, Newman, & Gerhart, 2011)

Some of the disadvantages that are included with broad banding include but are not limited to: * Too much power could be given to the managers and they could establish an unfair or non-competitive pay wage for a...
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