Which of the Following Is a Disadvantage of the Pay

Multiple Choice

Which of the following is a disadvantage of the pay grade approach?

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