The advantages and disadvantages of broad banding as a compensation plan Often a salary structure has ranges—minimum, midpoint, and maximum—as shown in Exhibit 8.17 ( Develop Pay Grades) in your text. Frequently, a market position is drawn from the range midpoint. Another option becoming popular is broad banding. Each method has advantages and disadvantages. Look at the salary structure and occupational families presented in the United States Office of Personnel Management Salary Table 2011-GS linked in the Resources. Notice how broad the bands are for individual jobs.
Write a paper analyzing the advantages and disadvantages of broad banding as a compensation plan. Conclude with explaining your position stating whether you think broad banding can be successfully competitive in your current or previous work environment and provide supporting reasons for your position.
Review the scoring guide for this assignment before submitting your completed paper.
Scoring Guide: http://www.capella.edu/undergradwritingcenter/apaCiting.aspx
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin. ISBN: 9780078029493.