B2C to B2b Marketing Paper Essay Example | Topics and Well Written Essays - 1000 words

B2C to B2b Marketing Paper - Essay Example Traditionally, businesses begin as B2C but as they expand and look for new markets develop a B2B operations. However, this model of development has significantly changed because of advances in technology. Though B2C and B2B's characteristics essentially remain the same, they have already exceeded their basic definitions. B2C refers to businesses dealing directly with consumers. The action of purchase is for the purpose of personal consumption. It is not to imply that the customer or consumer has to procure the product or service directly from the manufacture or service provider, B2C can take the form of a person buying a product from a store or person availing of a free spa treatment with a gift certificate or voucher. B2B in contrast refers to businesses engaging the service or procuring products for their own operations and not for consumption. An example of B2B would be a bakery buying flour to produce its breads. The criteria defining whether the interaction is B2B or B2C is consumption (Koetler, 1998). The objective in a B2C model is to promote or market a site is to be able communicate on a personal level. Each consumer will have different motivations and these motivations may vary greatly considering individual perception, socio-cultural background (both demographics and psychographics), and experience. These elements define the customers' needs which initiate the buying process. The following figure is an example of a depiction of what influences consumer behavior: Therefore, sites that wish to appeal to consumers have to focus on the characteristics of customers and to consider the decision process of these customers which characterizes the type of person that consumer is. In contrast, B2B customers' motivations or preferences are generally based on quantitative pre-defined needs or criteria. B2B transactions generally arise from the following: 1. Raw material or industrial supplies or services are needed to produce an end product to be sold in the open market 2. Raw material or industrial supplies or services are needed as components of processing a product 3. Products or services are bought form an original manufacturer for resale 4. Products or services are bought from s non-original manufacturer for the purpose of distribution 5. Products or services are bought as a complete system or "turnkey" operation. Figure 2 illustrates the buying process that characterizes the undertaking of B2Bs. It is not required that all of these stages are passed through in each B2B transaction. At this level, buyers are limited by the people and other factors that affect the company. This then highlights the influence organizational culture plays in the buying process. Therefore, in marketing a site on the B2B model, the marketer must consider not just that direct need but also the main use of the product, its users and even the tendencies or preferences of senior executives and others who have bearing on company policies (Johansson, 2001). Differentiating Approaches in B2C and B2B Table 1 summarizes the differences between B2B marketing and B2C marketing. Marketing

Work, Labor, Play by Auden Essay Example | Topics and Well Written Essays - 750 words

Work, Labor, Play by Auden - Essay Example nished object, product or durable object. The focus is more on the activities making up the process of producing something rather than on the ?nished object† (Maycroft). In other words, work can be said to be done if a finished product is obtained out of the work. On the other hand, it is not necessary that labor produces any finished product. According to Stephen Palmquist, â€Å"labor is any form of life-sustaining effort that is rooted in the "biological process". Work is any form of creative productivity that results in "worldliness"† (Palmquist). In scientific terms, work is said to be done only of the object changes displaces from its initial position. If the object is not displaced, we cannot say that work is done. In that case, we can use the term labor instead of work. In short, work and labor are controversial terms, which are difficult to define. WH Auden in his article, â€Å"work, labor, play†, has defined work, labor and play in different manner. Thi s paper analyses the differences between work and labor and the relationship play has with work and labor. According to Auden, â€Å"A man is a labourer if the job society offers him is of no interest to himself but he is compelled to take it by the necessity of earning a living and supporting his family† (Auden).... Between labour and play stands work. A man is a worker if he is personally interested in the job which society pays him to do; what from the point of view of society is necessary labour is from his own point of view voluntary play (Auden). Play is the activity people often undertake because of their interest. David Beckham is a Football player who plays Football because of his interest in it. Same way, Sachin Tendulkar is a cricket player since he enjoys cricket as a player. However, we cannot label either Sachin or Beckham as labours or workers even though they are doing lot of hard works while playing. It is a fact that they are getting decent money for their work as cricket or football player. Even then, it is impossible to mark them as workers. On the other hand, Steve Jobs and Bill Gates can be labelled as workers. They are excellent professionals who work with enthusiasm and interest in their profession. It is difficult for Gates or Jobs to excel in a sales or accounting profes sion. If these people somehow forced to work in sales or accounting profession, we cannot label them as workers anymore. In such cases, they are only labourers according to the arguments of Auden. In short, play is an activity, which is done fully for enjoyment purpose whereas labour is an activity which is done only for wages; not for enjoyment. Auden argues that the position of work is in between these two; play and labour. In other words, work is done not only for wages but also for enjoyment. Leisure is another activity in which workers and labourers differ widely. According to the views of Auden, â€Å"to a worker, leisure means simply the hours he needs to relax and rest in order to work efficiently whereas to the labourer, leisure means freedom from

Should the Government Intervent Tax Essay Example | Topics and Well Written Essays - 750 words

Should the Government Intervent Tax - Essay Example Hence the government, in my view, should intervene through tax rates to keep the economy and society controlled. Government intervention through tax rates is of paramount importance when negative externalities are to be dealt with. The market consists of two types of goods, public and private. Private goods are associated to the concept of excludability, referring to the exclusion of people from the benefits of a product or service that do not pay for it. On the other hand, public good is non-excludable and benefits the entire population regardless of their non-payment. Free-riding issue arises in this situation leading to chaos and dissatisfaction toward those counterparts of the society who are not contributing enough to the society compared to the benefits they are receiving (for instance healthcare and security/defense facilities for tax-evaders or undocumented immigrants in some cases). Institute on Taxation and Economic Policy (ITEP) has contributed to the knowledge by revealing that undocumented immigrants can be a major source of tax earnings if they are permitted legally to work in th e US and would end up increasing the tax contribution by about $2 billion per year (ITEP, 2015). Government must intervene by changing tax rates to control consumer demands. By increasing tax rates, the government may reduce the disposable income and hence reduce the consumer demand. Similarly, if it wants to increase consumer demand, generally or specifically for certain goods and services, subsidies can be provided and/or tax on that particular product/service can be reduced. Hence, tax rates on specific products, services or industries as well as taxes on individuals and specific population groups can both help governments to keep harmony in the economy. The government calls funds from the local economy by taxing general public and businesses. These funds are then

The Externalizing Machine Essay Example for Free

The Externalizing Machine Essay In todays mostly capitalistic world people who are consumers think that they have power to decide what products to purchase; people who are stockholders are only interested in the profit; people who run corporations make that profit regardless of the price others have to pay; and people who live in developing countries work for 3c per hour making brand name cloths which then are sold for $20, $60, $100, $200, $500, making at the same time the corporations profit skyrocketing. It is widely known that there are sweatshops in developing countries, where people are treated like slaves but practically they are not slaves because they always can walk off the job. It is known that in such countries there is exploitation of child labor, but practically what can a citizen of other country do to help if they have enough their own problems. It is also known that work conditions in such factories are horrible, but what one can do if those companies offer lower prices. Is it fair towards society as a whole that some people are exploited so others can make skyrocketing profits? Is it fair that your TV was partially made by a 6-year-old child? Is it fair that the product you bought harms or even kills you or one of your family member? Is it fair if this does not happen to you but to some other people in some other countries? Is it fair that infants are given harmful baby-formula prohibited in developed countries? There are many questions that can be asked whether it is fair or not, but what happens if we interchanged the word fair with legal and instead we ask whether all those actions are legal or not, and who makes them legal or not. The author Joel Bakan of The Corporation tries to find an answer to those questions and tries to show what impact corporations actions may have on human beings and environment. Joel Bakan in his book brings up issues of sweatshops, environment pollution, externalities, government regulations, advertisement, and many others. He uses concepts of corporation as a psychopath and doom machine. By this Bakan means that corporations, in its pursuit of maximizing the profit at any cost, they destroy people, environment, and themselves at the same time. Even thought there are many important issues throughout the book my focus will be on chapter three Externalities. As the title of the chapter says the most important issue in it is externalities, the effect that corporations have on third parties. The author explains the concept of externalities and gives some examples; this chapter also focuses on the process of how corporations make decisions regarding the products safety, how they make decisions whether to improve products safety or not, or how they make decisions regarding the possible corporate options in the light of profit. The author used some concept and theories in this chapter so lets start with identifying and explaining them. First the concept of externalities. An externality is the effect of a transaction on a third party who has not consented to or played any role in carrying out of that transaction. ; the effect can be either good (creation of new jobs, lowering unemployment) or bad (pollution, diseases, deaths, etc). They literally mean other peoples problems. Whether or not exernalitie have good or bad impact they are only the result of pursuit to make higher profits, and are only the result of self-interest; furtheremore it does not matter for corporation whether the results of corporations decisions are good or bad externalities, as long as the profit raises. (pg60,61) Bakan uses the concept of doom machine (example of paper mill) to explain why corporations are successful in destroying world they operate in. The concept means that corporations dynamic does not take into account the concerns of flesh-and-blood human and that in our search for wealth and for prosperity, we create a thing thats going to destroy us (Monk pg71) The author also uses the concept of corporation as a pschopath which means that corporations are ego-centric, irresponsible or refuse to accept responsibility, have asocial tendencies, and they will do anything to satifsy their goal which is to maximize profit at all costs regardless what harm it may cause. The author assums that many, if not all, corporations make harmfull decisions that will eventually destroy the world, and at the same time will destroy the corporatins themselves. I think that Joel Bakans assmumptions are that all corporations do not care about the environment they operate in, that they would pollute everything to maximize profit, that the only guideline corporations use in making a decision is a cost-benefit analysis, and that eventhough corporations are made of individuals who would not want to harm other people together they would kill other people if it maximizes the profit. The author takes for granted that all corporations do not care, and that if they pretend they care, it is because they want to maximize the profit, and that if they comply with the law it is beause it would cost more not to obey the law, the author takes for granted that all decisions made by corporations are based solely on cost-benefit analysis not on ethical or moral codes or guidelines. The author assumes that corporations eventhought they are made up of individuals with ethical codes they do not use them in making decisions regarding profit. Therefore the author is asking why they make such decisions, why they only consider profits that can be made in near future but do not consider their future existance. The author asks how corporations make such decisions that in long run will destroy human beings, environment and corporations themselves. Joel Bakan is asking why people as a corporation harm other people and themselves. As an example, the author gives Monks story. (Monk is one of Americas most important and influential businessmen, he worries about what is going on in modern corporations. ) Monk was staying in a motel in a small town. He was shocked when he discovered that paper mill is polluting the river in that town. Monks says that he knew everyone there, the mayor, the mill employees and owners, and he also knew that no one wanted the river to be polluted and yet it was being polluted every night. (pg71) Therefore, why if no one wanted it to be polluted they were still polluting it? The question is why corporations make such decisions that harm other human beings. If there is no person in a given corporation who would want to harm others, why as a corporation they not only harm people but even kill them. What is the difference between murdering someone by using a firearm or a knife and murdering someone by letting him drive unsafe vehicle or drink polluted water or eat poisoned food. Who assigns the difference and who lets those murders happen everyday around the world. The question is why corporations are not prevented from doing harm, and why they decide to harm others in the first place. To back up the issues raised in The corporation Joel Bakan uses a lot of data, information, and facts regarding corporations and the legal breaches that they did. Two most important informations include data used by GM in calculation of cost-benefit analysis of improving products safety; and General Electrics major legal breaches including many contaminations of the environment and the amount that they had to pay between 1990 and 2001 for those legal breaches. GM in deciding whether to improve cars safety calculated how much it would cost them. Therefore they calculated how many accidents would happen on US highways, how many fatalities it would cause, and how much it would cost the company in lawsuits and other expenditures, mainly meaning the cost of a fatality. The calculation was as follows: 500fatalities x 200,000 per fatality / 41,000,000 = $2. 4 per automobile. To make the car safer, it would cost company $8. 59 per car. Therefore, it was cheaper not to improve vehicles because GM would save $6. 19 per car in production. Armstrong and her children, that had second- and third degree burns resulting from a rear-end accident in 1993 due to the fire caused by unsafe positioning of the gas tank in GM Malibu, were awarded $1. 2 billion. (pg63) Two significant orders for GE to pay was i 2 billion for asbestos cleanup and related pollution, and $95 million in damages for contamination from dumping of industrial chemicals. (pg75-78) The total GE had to pay for contamination of the environment alone, between 1990 and 2001 was approximatelly $3 000 106 million (over $3 billion); total for violations of safety rules at nuclear fuel plant, for design flow in nuclear plants, for illegal sal of fighter jets, and for overcharging on defense contracts was $300 million. GE was also ordered 14 times to clean up contamination of drinking water (ground water, river, water supply) and soil. The assumptin is that General Electric makes huge amounts of profit, because GE is able to exist on the market even though it was ordered to pay over $3 billion puls the cost of cleaning up contamination. The broader assumption, based on GE example, is that corporations make huge amounts of profit at the cost of environment and human lives and they continue to do so even though they are ordered to pay millions or billions of dollars in fines. Given the information regarding corporations actions and the impact they have on developing countries, on societies, on environment we all live in, and on individuals, who should care the most and why should we care at all. Joel Bakan is trying to make the reader think about the reality we live in, about what is really going on in the world, about bigger picture than only ones family, job, or friends. I think that in Joel Bakans opinion everyone should care about what he says, everyone should care aout future generations, and future of this planet, therefore everyone should take an action in order to make this world a better place. If we take his line of reasoning and accept his arguments it would mean that we should stand against the big corporations and their exploitation of people and environment. We should not agree with their actions and should do something to stop those big corporations destroying the world. We as people and customers have lots of power, however we are lazy to use our collective power to stop those corporations in their harming actions, instead we prefer to pay less for products eventhough we know that those products were made by child labouer. If we agree with Bakans arguments it means that we say no to corporations and to their exloitation of people and environment not to business in itslef, we do not stand against the business but against those corporations that are overtaking the world.

Understandings of Genesis and Exodus

Understandings of Genesis and Exodus Judaism and Christianity are the two most known monotheistic religions. Both call sinners to worship the One True God and share a major part of the same sacred writings. Among these writings is the Torah, which also comprises the first five books of the Christian Old Testament. Although the narratives are the same, the perspective of each religion varies. The intent of this short paper is to present some differences and similarities between Jewish and Christian understandings of Genesis and Exodus. First, the difference between the Jewish and Christian understandings of Genesis lies in the recipient of its message. According to the Jewish mind, the nation of Israel is always the direct object of the Genesis message. This Israel-focused mentality is so strong that Professors Bruce D. Chilton and Jacob Neusner reports that From [Rabbinic Judaism] perspective, the entire narrative of Scripture from Genesis through Kings shows how Israel recapitulates the story of Adam and Eve, but it is a pattern with a difference: Adam and Eve lost paradise, never to return, but Israel after its exile returned to the Land and, with the Torah for guidance, would endure there.[1] Traditionally, Genesis is viewed as a historical account that narrates the origin, early tribal history, and Gods election of the nation. According to the Jewish Encyclopedia, the primary focus of Genesis is to show that the people of Israel are descended in a direct line from Adam, the first man created by God, through legitimate marriages in conformity with Israelitish moral ideals, i.e., monandric marriages.[2] However, history is not the only Jewish understanding of Genesis. Although no formal system of doctrines is explicitly given in the text of Genesis, Jews understand the religious teaching contained in the stories. The prevalent teachings include the existence of One True God who created the heavens and the earth, humanity as the crown of Gods creation, and the Patriarchs. Somewhat in line with the Israel-focused view, Christianity holds that Genesis does narrate these mentioned historical and election topics. Nevertheless, the Christian understanding centeredness is not onl y the early history of Israel, but the Person of Jesus Christ. Therefore, it is most commonly that the Christian understanding of Genesis looks for Christology rather than a national history. According to this understanding, Genesis accounts how humanity has sinned against God and how God, beginning through the election of Israel, is redeeming mankind to Himself through Jesus Christ. As a result, the details of the narrations in Genesis are seen in their full meaning in the light of the Cross. Exemplar details are the seed of the woman spoken in Genesis 3:15, the blessing promise to all families of the earth through Abram in Genesis 12:3, and the prophecy concerning Judah in Genesis 49:10. All these promises and prophecies find their fulfillment in Jesus Christ. Likewise, Jewish and Christian understandings of the book of Exodus vary in its message application. For the nation of Israel, the book of Exodus presents the most fundamental laws, customs, ethics, and worship descriptions. To the Jewish nation, the application of and obedience to these laws is literal. For instance, they are to put to death certain lawbreakers, obey the Sabbath regulations, and build the tabernacle according to the divine instructions. This literal mentality is not strict to the Jews journeying toward the Promised Land. It has been infused in the Pharisees mind of Jesus time and as far as todays orthodox Jews. In contrast to this literal understanding, Christians do not hold to the literal application of all laws and customs. Although the Christian understanding of Exodus involves the deliverance of Israel and the giving of the law, the application of other laws and customs (besides the Ten Commandments and basic moral ethics) are not strictly observed. In lieu, Ch ristians apply the principle behind these other laws. Similarly in the understanding of the book of Genesis, Christology takes Christian mentality beyond the events described in the book of Exodus. For instance, the Passover celebration, the deliverance from Egypt, the sprinkled blood for the Covenant, and the Feast of Harvest find their fulfillment in Jesus Christ finished work. Albeit the differences discussed above, Jewish and Christian understandings of Genesis and Exodus do share similarities. Both perspectives believe that these two first books communicate real occurrences, are inspired by God, are important to religious history, and edify their faith. The divergences between Judaism and Christianity does not nullify Christianitys root in Judaism. Thus, Christians share with Judaism its understanding on the importance of the Patriarchs, Israels national election, and giving of the law, even though Christians do not view these as an end in themselves but as pointers to the Messiah. They also share doctrines found in the book of Exodus concerning sin, the necessity for atonement, and the reality that Gods love and holiness are inseparable. As briefly discussed before, both Judaism and Christianity understand the general necessity and privilege of obeying and living in accordance to Gods holy decrees given in Exodus. Jesus Christs fulfillment of the Law di d not nullify it; rather, it gives Spirit-born believers a new spirit and heart which enable them to live godly. As seen in this paper, there are some differences and similarities between Jewish and Christian understandings of Genesis and Exodus. Their differences arise in the centrality of their understanding. Whereas Judaism understands Genesis and Exodus with an Israel-focused mentality, Christianitys tendency is to view the same books through Christological lenses. Nonetheless, the two religions do share similar understanding about the importance of Israels history, election, and some doctrines presented throughout Genesis and Exodus. May Christians wisely use these similar understandings of the book of Genesis and Exodus to point Gods beloved Israel to Jesus Christ! Bruce D. Chilton and Jacob Neusner, Classical Christianity and Rabbinic Judaism: Comparing Theologies (Grand Rapids, Michigan: Baker Academic, 2004), 43. Emil G. Hirsch and Benno Jacob, The Book of Genesis, JewishEncyclopedia.com, http://www.jewishencyclopedia.com/view.jsp?artid=137letter=Gsearch=Genesis#443.

Ben & Jerrys Ice Cream :: essays research papers

Ben & Jerry’s Ice Cream was founded on the corporate concept of linked prosperity, interrelating a three-part mission statement to focus their company’s growth. Their mission statement, which covers their product, economic and social goals, focuses both the leadership and the workforce on their key values. These values include staying in touch with the customer base, using quality ingredients, maintaining profitability and maintaining social awareness and accountability.   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the history of the company, its owners, Ben Cohen and Jerry Greenfield, have interacted with their customers, gaining knowledge on what people like and dislike about their ice cream. Opening their store in Burlington, Vermont in 1978, they immediately began interfacing with the local populace by hosting a free summer movie festival, projecting movies on the wall of their renovated gas station. In 1985, they introduced New York Super Fudge Chunk ®, a flavor suggested by a writer from New York City. Throughout the years, they have continued to introduce new flavors either suggested or inspired by either regular individuals or well-known celebrities.   Ã‚  Ã‚  Ã‚  Ã‚  Ben and Jerry launched their â€Å"Cowmobile†, a modified mobile home used to distribute free scoops of ice cream in a unique cross-country marketing drive. Unfortunately, the vehicle burned to the ground outside Cleveland, but everyone escaped unharmed. Ben said it looked like â€Å"the world’s largest baked Alaska.† Undaunted they resurrected the idea the following year with â€Å"Cow II†, once again going cross country giving away free scoops. That same year, at the suggestion of two â€Å"DeadHeads’ from Portland Maine, Ben and Jerry introduced the first ice cream named for a rock legend, Cherry Garcia. In 1988 they introduced Chunky Monkey at the request of a college student in New Hampshire.   Ã‚  Ã‚  Ã‚  Ã‚  Staying in touch with their customers would not enable Ben and Jerry to be as successful as they have become if their ice cream was not high quality as well. The second value the company espouses is to use only wholesome, natural ingredients. They began their operation on this premise, utilizing fresh Vermont milk and cream to create their frozen concoctions. During a period of volatility in the dairy market in 1991, the company went so far as to pay a dairy premium totaling a half million dollars to combat Vermont dairy farmers’ losses. This helped protect the family farmers who supplied the milk for Ben and Jerry’s ice cream. The combination of good product and good marketing over the years has enabled Ben and Jerry’s to increase sales and maintain profitability year after year.

Employee rewards Essay

Employee reward is about how people are rewarded in accordance with their value to an organization (Armstrong, 2001). It is concerned with both financial and non financial rewards and embraces the philosophies, strategies, policies, plans and processes used by organization to development maintain reward systems. An employee reward system consist of an organizations integrated policies, processes, practice, structures and procedures which will provide and maintain appropriate type and levels of pays benefits and other forms of rewards. The main components of a reward system include processes for measuring the value of jobs, the contribution of individuals’ in those jobs and the range and level of employee benefit to be provided, these processes consist of job evaluation, market rate analyses and performance management (Armstrong,2004). Practice for motivating people by use of financial and non-financial rewards, the financial reward rewards consist of base and variable pay and employee benefits and allowances and non-financial rewards are provided through effective leadership, the work itself and the opportunities given to employees to develop their skills and careers. Structures for relating pay and benefit levels to the value of positions in the organization and for providing scope for rewarding people according to their performance, competence, skill and experience (Gephart&Caroll, 1998). Employee rewards are an effective way to drive performance and reinforce the behavior that helps a company meets its objectives. Pay bands are profiled in terms of the level of required competence, which describe the typical or minimum requirements of the roles allocated to each band. Individual roles are then slotted into the appropriate band by the company their profile with the band profiles. The purpose of pay structure is to organize and demonstrate organizations compensation philosophy and to reflect and support the advancement of the company culture. An effective pay structure allows employees to attract and retain the people who can help achieve our business goals (Jones, 1991). Broad banded pay structure is one in which the range of pay is significantly higher than convectional graded structures. The progression is appropriate because they provide for more flexibility in making and administrating pay decision. Broad banded structure recognizes that in flat organizations career are more likely to develop within more broadly homogenous areas of responsibilities rather than progressing up a number of steps in a clearly defined hierarchy. This structure has few broad bands which reduces the problem of grade drift. More authority is developed to managers to manager rewards in their departments which they can view them as their kingdom. The broad banded pay structure posses a problem of controlling pay decision so that a fair degree of equity and consistency is achieved. Broad banded pay structure requires that the line managers are literate on the issues of pay otherwise the process will be badly managed and complains will arise in the organizational of discrimination in pay. Broad banded pay structure can only succeed in sophisticated organizations with a tradition of good pay practices if this is not adhered to misunderstanding may occur due to irregularities in pay of employees doing the same job. Broad banded pay structure enable line mangers the freedom to manage the pay of their staff within their budget but this can become disadvantageous especially if the managers create their own kingdoms in these departments. Also too much scope for pay progression. The control mechanism in broad banded pay structure can be provided but can be difficult to mange and costly as job evaluation of no longer drive grading decisions (White&Drunken, 2000). Broad banded may pay structure create unrealistic expectation or scope for pay rise as it seems to restrict the scope for promotions making if difficult to understand equal pay progress. All these issues can cause potential problems in an organization that operates a traditional narrow banded structure. Narrow banded structure has ten or more graded and progression is expected to occur in small but relatively frequent steps. Progression is usually linked to performance. It is more appropriate in an organization when the organization is large and bureaucratic with well defined and extended hierarchies. In narrow banded structure pay progression is expected to occur in small but relatively frequent steps (Thrope&Homan, 2000). The culture in the organization having narrow banded structure is one in which mass significance is attached to status as indicated by grindings. This pay structure is appropriate when same little scope of pay is wanted as it facilitates control and clearly indicating relativities. In a narrow banded structure the hierarchy is tall as all the jobs are allocated into a salary grade within the structure on the basis of an assessment of their internal and external value hence it will be difficult for a broad banded pay structure when being introduced in the organization as it is mostly appropriate for flat organization not all hierarchy organization. Each salary grade consists of a salary range in narrow banded structure which can be 10 or more grades while in a broad banded pay structure. It is more flexible and can consist of five to six broad bans. In a narrow banded structure the rate of salary progressive is determined by performance as well as length of service while the broad banded pay structure progression is linked to contribution and competency of the employee. In narrow banded pay structure the number of salary ranges required depends on the lower and upper salary level of the jobs in the structure of an organization, the differentiate between the ranges, and the number of distinct levels of responsibility in the hierarchy which need to be catered for by separate grades. This will create many pay grade which if a broad banded pay structure is introduced in the organization implementation will be difficult as it will be possible to design and differentiate them more accurately as an aid to better precision when grading jobs.