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In: Economics

please write short essays answer this question :Define broadbanding AND state its limitations.

please write short essays answer this question

:Define broadbanding AND state its limitations.

Solutions

Expert Solution

Broadbanding is defined as a pay structure in the form of few but broader salary ranges. Under this, companies can increase the payment without promoting the employees while also providing trainings. Therefore, it is considered as a more flexible payment system. However, broadbanding has some limitations which are:

> Lack of promotions:
Under broadbanding, salary bands are few which leads to lesser chances of going to the next band. This would lead to lesser opportunities for the employees which reduces their motivation.

> Training to certain employees:
Only certain employees would be given trainings as they are mostly favoured when broadbanding is adopted. Therefore, the management must make arrangements for the other employees as well.

> Increase in tasks:
Due to broadbanding, the tasks of employees might increase. This could lower the motivation of the employees resulting in poor performance.

> Inequity among employees:
Broadbanding weakens the link between salary earners and skilled employees. Under this, employees with the same duties have salaries with a huge difference in them.


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