Which of the following is a disadvantage of the pay grade approach?
A)The administrative burden of setting separate rates of pay for numerous employees is increased.
B)It is inflexible when it comes to moving employees from job to job.
C)Demotions are not well received in a pay grade system when compared to a job-based system.
D)It might give rise to some jobs being underpaid and some being overpaid.
E)It does not recognize that performance difference in the higher levels has much impact on the organization.

Question

Quizplus · Accepted Answer

The pay grade approach can lead to some jobs being underpaid and others being overpaid because it groups jobs into broad categories, which may not accurately reflect the market value or the specific demands of each job.

Which of the Following Is a Disadvantage of the Pay