The process of classifying all roles inside a company and allocating them to a standardized scale according to the broad duties, responsibilities, compensation range, and commitments of each position is known as job categorization. Every piece of work is regularly given grades or job classification levels so that it can be appropriately handled and categorized inside the company.
The ultimate goal is to properly define job duties, even if many organizations have different frameworks for classifying jobs. Additionally, this enables companies to compare comparable positions at other companies within their sector. Therefore, rather of considering the skill level and ability of an individual already holding that position, a job classification system considers the skills and abilities needed for the role. BambooHR defines job categorization and outlines its advantages for your company.
Why is it necessary to classify jobs?
There are several methods for categorizing employment, and they usually vary from company to company and industry. The main objectives of job classification are as follows:
- to set crucial qualifying criteria in order to facilitate the hiring and selecting process.
- to support the development of standards for performance and evaluation.
- assigning tasks that support the company’s business plans and strategies and are consistent with the organization’s mission and vision.
- Career and advancement paths inside the organization are identified.
- Set rules for compensation.
What is the overall job classification hierarchy?
There are numerous approaches to create the different job functions and work families. Nonetheless, there are established techniques for handling problems. There are many other job categories, including management, sales, human resources, accounting, marketing, customer service, shared services, logistics, and research & innovation. The activities that take place within the family establish the employment duties.
CEO: Chief Executive Officer
Additional C-level executives include the President, Vice President (VP), Chief Operating Officer (CFO), Chief Marketing Manager (CMO), Director, Manager, Team Leader, Operator, Associate, and Representative
Benefits and Drawbacks of Classifying Jobs
Advantages
The ability to classify similar or identical work functions into a single category is the best feature of the job classification system.
It can enhance the business’s operations and assist in creating a just compensation plan for all of its divisions’ workers.
Once the occupations are categorized in the correct sequence, the responsibilities are distributed fairly among the employees of the organization.
This categorization can be used to promote employees who perform the same tasks throughout the company, which entails a wage increase and a higher job title.
In spite of having a broadband salary structure, the company is able to give its employees the appearance of seniority or hierarchy.
Drawbacks
One of the job classification system’s drawbacks is that, because it only applies to the company that developed it, the data pool is small or restricted.
For every new job opportunity, every existing position needs to be reevaluated.
Job categorization decisions are highly subjective due to the significant involvement of human resources in the evaluation process, and the individual doing the evaluation may undervalue or misread the significance and attributes of a particular work function.
