Job Grading is the process of evaluating and categorizing jobs within an organization based on their relative value and complexity. This systematic approach helps in determining appropriate salary ranges and establishing a hierarchy of positions. Job grading typically involves assessing factors such as job responsibilities, required skills, education, experience, and working conditions. It aims to ensure internal equity by aligning similar roles with comparable compensation and benefits.
For example, a company might use job grading to classify a software developer as a Grade 5 position, indicating a high level of technical skill and responsibility, while an administrative assistant might be classified as a Grade 3. This grading system helps in creating fair and competitive salary structures and aids in career development planning.
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