Requirements 2 work design so that employee teams

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requirements, (2) work design so that employee teams enjoy discretion in making decisions and continue to learn, and (3) pay systems based on performance. Whatever the overall HR strategy, a decision about the prominence of pay in that HR strategy is required. Pay can be a supporting player, as in the high performance approach, or it can take the lead and be a catalyst for change.
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57 MNH306K/101 Examples from the case study are: eliminating job grading system fewer salary bands results sharing programme must change compensation strategy 4.2 With broader salary bands, salaries will not rise greatly as employees move to the top of their respective bands. Substantiate your answer by discussing the advantages and disadvantages of broad-banding. (12) Use study unit 7 as point of departure for answering this question. To focus your mind, give a brief definition or description of the term “broad-banding”. Then discuss the advantages and disadvantages. You should give a yes or no answer only after you have discussed the disadvantages and then substantiate your “yes” or “no” answer. Broad-banding collapses a number of salary grades into smaller numbers of broad grades with wide ranges. It is a system whereby traditional job evaluation grades are grouped together into broad bands or ranges and consolidates as many as four or five traditional grades into a single band with one minimum and one maximum. Because the band encompasses so many jobs of differing values, a range midpoint is usually not used. The traditional hierarchical and seniority-driven organisation is being replaced by high involvement organisations with fewer layers, less managers and participative structures in which employees manage themselves in self- directed work teams and are having greater input in the policy decisions that affect them. Broad-banding supports organisations opting for fewer levels in the hierarchy. It greatly simplifies the job evaluation process and drastically reduces the number of job evaluations. At the same time it eliminates most of the pettiness and feelings on inequity that result from minor differences between job grades; and is also very compatible with other pay structures such as skill-based pay. Advantages of broad-banding: provides flexibility to define job responsibilities more broadly supports redesigned, downsized, or organisations that do not have boundaries, which have eliminated layers of managerial jobs foster cross-functional growth and development promotes lateral movement of employees across functions within a band to gain dept of experiences emphasises lateral movement with no pay adjustments, which helps manage the reality of fewer promotion opportunities in flattened organisation structures flexibility eases mergers and acquisitions range minimums, maximums and midpoints ensure consistency across managers managers using bands are only limited by a total salary budget
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