BUS FPX 4043 Assessment 3 Reviewing a Salary Structure
Phillip February 27, 2024 No Comments

BUS FPX 4043 Assessment 3 Reviewing a Salary Structure

BUS FPX 4043 Assessment 3 Reviewing a Salary Structure


Capella university

BUS-FPX4043 Compensation and Benefits Management

Prof. Name



Broadbanding refers to the consolidation of multiple salary grades and ranges into broader bands with fewer divisions (Giancola, 2009). This approach gained popularity in the 1990s as companies sought to streamline operations by reducing the number of hierarchical positions. Unlike traditional salary structures, broadbanding offers flexibility and adaptability to organizational changes. It also encompasses broader job responsibilities compared to conventional structures, which can be advantageous in environments with limited opportunities for advancement or promotions.

However, broadbanding has its drawbacks. One issue is the potential for managers to have excessive discretion in salary decisions, undermining cost-saving objectives. Additionally, the broad salary ranges can make it challenging to establish fair starting salaries for new hires, as midpoint definitions may lack clarity. Attempts to address these challenges often lead to broadbanding resembling more traditional structures, diminishing its unique benefits.

In the healthcare sector, where structured pay scales are essential, broadbanding may not be suitable. Healthcare organizations typically require detailed pay scales for each department, categorized by operational, administrative, or clinical roles, with specific scales for each position within these categories. Given the complexity and diversity of roles in healthcare, reducing them to broader bands may not align with the sector’s needs.


Giancola, F. L. (2009). A Framework for Understanding New Concepts in Compensation Management. Benefits & Compensation Digest, 46(9), 1–16.

BUS FPX 4043 Assessment 3 Reviewing a Salary Structure

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