What is Job Classification? Advantages & Disadvantages (Updated 2019)

What is Job Classification? Advantages & Disadvantages (Updated 2019)

Before diving into Job Classification advantages and disadvantages, let us learn what exactly the term means! Job classification is a systematic technique of analyzing, sorting and classifying various job positions, generally or specifically depending upon the organization, by taking into consideration and comparing various factors and aspects such as responsibilities, salary/ compensation, duties, experience level (entry, associate, mid-senior, senior, director, or executive), and many other characteristics associated with the vocations.

The evaluation methodology groups different job positions into grades, with each grade having its own specific job description; this grouping process is known as job grading method. Often the grading process defines the pay scale and the title of the representatives occupying a position in their respective grade class.


Advantages of Job Classification

Classifying job positions into different grades tends to show tremendous benefits while recruiting, analyzing performance, promoting or demoting employees, planning compensation and appraisal, and other similar activities/ instances.

  • Gives a better financial advantage by providing insight into the job description, employee salary, remuneration and Cost to Company (CTC)
  • Simplifies recruitment and selection procedures by proving general qualifications required in applicants and job standards
  • Helps in formulating a proper compensation and appraisal strategy/ plan
  • Helps in developing a proper career and growth plan for an organization as well as employees
  • Empowers management to handle a wide variety of job openings, posting, and functions
  • Allows administration to group and names positions that have similar duties and responsibilities, sort different titles, and assign appropriate pay

Disadvantages of Job Classification

The drawbacks of job classification include:

  • The tools and systems used for classifying jobs are complex to use
  • Since all the individuals grouped into a single grade have similar pay, the talented ones receive no recognition
  • Gives compensation and remuneration problems
  • The process of classification is a subjective method
  • Defining the grade description is difficult
  • Job classification is not constant and needs to be modified according to changing trends
date  10 Jul 2019

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