The use of delayering and banding in organizations reduces opportunity for promotion.

Question

Quizplus · Accepted Answer

In response to the problems caused by job-based pay structures, some organizations are delayering, or reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases. These broader groupings of jobs are also known as broad bands. One possible disadvantage of delayering and banding is a reduced opportunity for promotion.

The Use of Delayering and Banding in Organizations Reduces Opportunity