Today's organizations have to be concerned not just with accurate selection but also with fairness in employment, to assure the employees of fairness in compensation, benefits and privileges, most of the companies used Job Grading Method, the most simple, widely used method in which jobs are categorized into groups. The groups are called classes that contain similar jobs or grades, these sets of jobs are ranked on levels of difficulty or sophistication, the purpose of the job grade policy is to assure internal equity and consistency in pay rates, this job grade policy provides a method for objectively setting rates of pay for employees.
Positions are assigned grades based on several factors and based on comparisons between other positions. These kinds of system have lot of advantages both for the employer and the employees. This is an advantage in the sense that the management can easily provides specific standards for compensation and accommodation changes in the value of individual jobs, it can be constructed simply, quickly and cheaply, easy to understand and explain to employee. Another noted advantage is the employee’s commitment to the long-term future of their organization and this, in turn, will help the organization adapt to competitive pressures.
There is better alignment of employee competencies with business goal, more motivated work force, and enhanced cost effectiveness. The Employee will untapped their knowledge, skills, and initiative to attain next higher grade level that will foster good performance, It will improved skills, attitudes and knowledge, enhanced morale and job satisfaction, and improved opportunities for development. The employees have a greater sense of company direction or a clearer understanding of organizational direction and values.
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It will increase awareness of how to manage their careers realistically and have greater sense of personal responsibility; all of those will help bind the employee to the company. Job Grades types of system in an organization would eliminate old-fashioned hierarchies between white collar and blue collar workers. Another advantage is the practice that even if there is a position changes in level of responsibility and the position is evaluated at a lower grade, the employee(s) currently holding that position will not receive a reduction in pay.
By contrast the Job Grading Methods have somewhat in the process disadvantages because sometime jobs are forced to fit into categories that are not entirely appropriate and feelings of inequity can result, the management of the organization will going to have problem in deciding how many classifications there should be because too few classes will make it difficult to differentiate job value while too many classes make writing definitions almost impossible.
In this type of system the transfer to a different position in the same grade level is not considered a promotion and, therefore, no pay increase is generally granted. The grade of a current position will only be reviewed if the responsibilities and scope of the position have changed fairly significantly since the original job grade was assigned. In job grades method, each classes or level requires some degree of training, this must be satisfies to go up into next level and it is based on merit system.
Though there is other methods of evaluation system, almost all government and privately own corporations used the same because of its flexibility and easy planning preparations. This promotes not only the goods of the companies but also the welfare of the employees to satisfy their needs commensurate to their efforts done. The objective of this is creating a system that is equitable to the employer and employee alike. The desire outcome is met and the works are productive and acceptable.
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