Scenario 9.1
Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.
-Refer to Scenario 9.1. What type of pay system is D&D Inc. currently using to compensate its employees?
A) broadbanding
B) competency-based
C) red circle rates
D) piece rate

Question

Quizplus · Accepted Answer

D&D Inc. is using a broadbanding pay system, as indicated by the collapsing of pay ranges for four job bands into a wider range. This approach reduces the number of pay levels, allowing for more flexibility in pay within broader bands.

Scenario 9.1 Denton and Denton Inc. (D&D Inc.) Is a Small Graphic