Which principle suggests that smaller pay ranges can lead to increased control over compensation costs?

The principle that suggests smaller pay ranges can lead to increased control over compensation costs is the Principle of Control. This principle emphasizes the importance of managing pay structures effectively to maintain budgetary constraints and control within an organization. Smaller pay ranges help to create a more structured approach to compensation, making it easier to enforce pay equity and to manage salaries within designated limits. This ensures that compensation practices align with the organization's overall financial strategy, enabling better forecasting and management of compensation expenditures. By keeping pay within narrower ranges, organizations can also avoid excessive pay disparities and reduce the risks associated with wage inflation, maintaining tighter spending control over employee remuneration.