The new management at LennoCorp felt that the company had too many salary grades, making the compensation system overly complex and encouraging an obsession with pay grade rather than skill development. They are collapsing the salary grades into a few wide salary bands in a process known as
A)red circling.
B)broadbanding.
C)pay ranging.
D)factor comparison.

Question

Quizplus · Accepted Answer

The process of collapsing salary grades into wider salary bands is known as broadbanding. Red circling is the practice of maintaining an employee's salary even when it is higher than the maximum of the new salary range, usually due to market competitiveness, while pay ranging and factor comparison are not relevant to this scenario.

The New Management at LennoCorp Felt That the Company Had