Which modern compensation technique consolidates numerous narrow salary grades into a few wide salary bands with broad pay ranges?
APoint Factor System
BBroadbanding
CSkill-Based Pay
DVariable Pay
Explanation
• Broadbanding collapses traditional multi-tiered salary structures (e.g., 20 narrow grades) into a few wide salary bands (e.g., 4-5 broad bands).
• It increases administrative flexibility, encourages lateral career movement, and deemphasizes rigid hierarchical promotions.
Exam Relevance
- Topic: Compensation & Benefits
- Subtopic: Salary Structuring

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