Final answer:
Broadbanding is a compensation strategy that reduces the number of pay grades to a few wide levels, known as 'bands', allowing organizations flexibility in pay structures. It stands in contrast to equal pay doctrines and is related to but distinct from employment phenomena like job polarization. Option C is correct.
Step-by-step explanation:
The practice of establishing a small number of broadly defined pay levels is known as broadbanding. Broadbanding is a compensation strategy that collapses many pay grades into a few wide levels or "bands," allowing more flexibility within the pay structures. The purpose of broadbanding is to give organizations more flexibility in managing employee compensation by widening the salary ranges. This practice is seen as a way to encourage the development of broad skills and growth within a given pay level, rather than focusing solely on promotion as a means of increasing pay.
Another important pay-related concept is the doctrine that people who do jobs that require the same level of skill, training, or education are entitled to equal pay. This principle is aimed at promoting fairness and eliminating wage disparities that may arise from discrimination.
The term polarization describes the increase in wage differences between high-end and low-end jobs, which contributes to fewer opportunities for those in middle-level positions. This may be driven by various factors including technological change, globalization, and changes in workforce dynamics.