Reducing the number of pay ranges in the organization's job structure is called:
A)red-circling.
B)broadbanding.
C)green-circling.
D)job evaluation.
E)none of the abovE.

Question

Quizplus · Accepted Answer

Reducing the number of pay ranges in the organization's job structure is called broadbanding, which involves collapsing several pay grades into a few broad bands or pay ranges. This approach can simplify the job structure and reduce bureaucracy, but it also requires a more flexible approach to compensation and may require additional performance management and career development systems. Red-circling refers to retaining an individual's current pay rate while increasing the pay for new hires, while green-circling involves freezing an individual's pay rate while increasing the pay for new hires. Job evaluation is the process of assessing the relative value of different jobs in an organization.

Reducing the Number of Pay Ranges in the Organization's Job