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