Classification Method

Posted in Human Resource Terms, Total Reads: 274
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Definition: Classification Method

The process by which jobs or jobs that have comparable duties and responsibilities are clustered is called classification. These clusters, usually termed as grades/categories form the hierarchy of the organization.

 

It depends upon the following criteria:

• Nature of the job

• Scope of the job

• Responsibilities and duties assigned

• Position in the organization hierarchy etc.

 

Example:

Let there be 3 grades of workers, A, B and C, dived according to the nature of their job and responsibility assigned.

Below is the table describing the jobs categorized in the 3 grades:

Grade

A

B

C

Type of work

Clerical

Clerical

Clerical

Supervision

High

Little

None

Qualification Required

High School

Graduate, MS Office especially excel

Masters, Proficient in MS office, Excellent communication skills

Responsibility

None

Simple projects

Supervision of several projects

Possible jobs categorized

Mail clerk

Analyst

Regional Manager

 

Importance of job classification:

• Builds the organization’s hierarchy

• Determines the job’s worth

• Effective for comparing jobs with respect to the job content, responsibility, skills required etc.

• Helps to devise a strong and befitting compensation package.

• Effective for organizational planning.

• Budgeting becomes easier in case of expansion

 

Advantages

• Simple

• Organizationally standardized

• Easier to categorize new jobs

 

Disadvantages

• Classification may be subjective

• One job may seem to fit more than one grade

• Categorization standards may be biased. Example, Jobs with frequent travelling may prefer males only

• Job classification criteria differ with respect to organizations. So, this may give rise to disputes during mergers. Example, Company A is being acquired by B. These companies have different classification standards. As a result, Mr. X, who was in grade 3 of Company A is now being assigned to grade 2 of company B. This might also mean a reduced pay package.

There may be other candidates like Mr. X and this might give raise to widespread discontent among the new employees and create an organization wide unrest.

 

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