True or False: A grade ladder can include grades with steps.

A grade ladder is a structured system used in compensation management to define the hierarchy and progression of job grades within an organization. Each grade within this ladder typically corresponds to a set of job roles that share similar responsibilities and required competencies.

When we consider the concept of "steps" within grades, it's essential to understand that steps refer to the incremental levels of pay or progression within a single grade. In many organizations that utilize a grade ladder, grades are designed to reflect different levels of responsibility, experience, or job complexity. While some organizations may implement a structure that allows for a step system to reward employees for longevity or performance within a grade, this does not universally apply to all grade systems.

By stating that a grade ladder can include grades with steps is not accurate in a general sense; it overlooks the variability in how organizations can structure their compensation grades. A grade ladder primarily refers to the levels of grades, not necessarily to the inclusion of steps within those grades. Therefore, in its typical form, a grade ladder would not inherently include steps.

Thus, the correct understanding of this concept leads to the conclusion that asserting a grade ladder can include grades with steps does not hold true across the board, clarifying the rationale behind the selection of the answer.