Which of the following is a disadvantage of the pay grade approach? Demotions are not well recelved in a pay grade system when compared to a job-based system It is inflexible when it comes to moving employees from job to job. It does not recognize that performance difference in the higher levels has much impact on the organization. The administrative burden of setting separate rates of pay for numerous employees is increased. It might give rise to some jobs being underpaid and some being overpaid.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Which of the following is a disadvantage of the pay grade approach?
Demotions are not well recelved in a pay grade system when compared to a job-based system
It is inflexible when it comes to moving employees from job to job.
It does not recognize that performance difference in the higher levels has much impact on the organization.
The administrative burden of setting separate rates of pay for numerous employees is increased.
It might give rise to some jobs being underpaid and some being overpaid.
Transcribed Image Text:Which of the following is a disadvantage of the pay grade approach? Demotions are not well recelved in a pay grade system when compared to a job-based system It is inflexible when it comes to moving employees from job to job. It does not recognize that performance difference in the higher levels has much impact on the organization. The administrative burden of setting separate rates of pay for numerous employees is increased. It might give rise to some jobs being underpaid and some being overpaid.
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