Al's company just instituted a new compensation program for managers.Pay is based on competencies such as leadership, problem solving and strategic planning.Pay levels are preset and reflect the degree of competency.What kind of compensation system was used?
A)Broad-banding
B)Scanlon Plan
C)Piece rate
D)Ordering
E)IMPROSHARE

Question

Quizplus · Accepted Answer

The described compensation system is Broad-banding, which groups a wide range of jobs into a few broad bands, with pay based on competencies and the level of those competencies rather than specific job titles or duties. This allows for more flexibility and growth within the company.

Al's Company Just Instituted a New Compensation Program for Managers