Creating an Employee Grade System: How Do You Fit Different Roles and Designations?

Hi all,

I need to define the employee grades for my organization. The designations may be specific to their roles and responsibilities. I am looking at an overall grade system for all employees within which different designations will fit in.

It would be helpful if anyone could share information or advice on this issue.

Dear Ramesh,

You have not specified the industry type in your email. Designations and grades can be formed according to that. For instance, in a manufacturing company, workers, supervisors, and managers can be divided into different cadres as per their roles and responsibilities (W1, S1, M1, and so on). In the same way, in any service industry, such as a financial company, designations can be based on sales and support staff.

Regards,
Chaitali
Surat, Gujarat

Hi,

Regarding the grading structure to be implemented in your organization: First of all, you have to take into consideration which model you are going to use to create the grading structure.

1) Whether you are going to compare job to job, i.e., a simple comparison.

2) Whether you are going to judge the worth of that particular job (Ranking Method).

3) Whether you are going to evaluate the worth of the job and the factors responsible for efficient job performance (Point Factor Ranking Method).

You can utilize the Point Factor Ranking Method to determine the value of the job.

After determining the value of each position in the organization, you can create a grading structure where you allocate specific points to each grade and place the job titles accordingly.

This approach can help you define your salary structure, including establishing the range, such as the Mean, Median, and Maximum.

These are my views; any other methods of creating a grading structure are highly appreciated.

Regards,

K. Hari

Dear Mr. Hari,

Your point of view seems very interesting. Could you please share the methodology of implementing this ranking method and also the Point Factor Ranking Method in a manufacturing industry?

Regards,
Rai

Hi Ramesh,

First of all, a clear business strategy covering the core competencies of your company needs to be compiled along with your functional organization chart. Every position has to be written in the form of KRA (key result areas) and analyzed as it would impact the bottom line. Once all the positions and hierarchies are created, this will define the position and designation in the organization. The KRA has to be reviewed every year with the business plan. For some areas, positions will increase while sometimes we may have to eliminate redundant positions continuously. However, these are basic methods. We need to apply different approaches to different industry types.

Ramesh Rangachari

Hi Ramesh,

First of all, a clear business strategy covering the core competencies of your company needs to be compiled along with your functional organization chart. Every position has to be defined in terms of KRA (Key Result Areas) and analyzed as it would impact the bottom line. Once all the positions are established, hierarchies are created to define the position and designation within the organization. The KRAs need to be reviewed every year in alignment with the business plan. In some areas, positions may increase, while at times, redundant positions may need to be eliminated continuously. However, these are basic methods that need to be applied differently based on the industry type.

Ramesh Rangachari

Hi,

For defining or structuring grades, first, you need to define the job description and then start with job analysis. Then you should decide what kind of structure you would like to have in your organization, such as broadbanding or a tall vertical structure depending on the industry. You can proceed with methods like straight ranking, alternate ranking, paired comparison, or the point factor method.

Regards,
Gaurav

Dear Friends,

I have initiated the process of grading in my organization (Manufacturing unit). There are many designations which I feel are not required because the job profile coincides with the other designation, e.g., Accounts Assistant and Accounts Officer. Also, another concern that I have is that there is a huge variation in salary packages between the same designations in different departments.

The main objective of initiating the grading process is to ensure uniformity in the salary of the employees and also to boost the morale of the employees. Friends, kindly suggest to me how to proceed. Anyone can send me sample formats or communicate at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=YnVnc2J1bm55Mz EwOEBnbWFpbC5jb20=[/IMG]

Regards, Bugs

I work with a 'Manufacturing Concern', and we are making a conscious effort to modify the existing grading because we find it highly inappropriate to call somebody who works, say, for example, in the Foundry Department as Junior Executive or Senior Executive. It sounds like we are designating an IT professional as Store Supervisor.

I have gone through the previous posts and am particularly inclined towards Mr. K. Hari's proposition and the "Point Factor Ranking Method". I would be grateful if you could further clarify how to classify the grades and how we can assign proper Band Levels and Designations. Or, for that matter, anybody from the 'Manufacturing Concern' who could share how they have graded the hierarchy, with special reference to Staff Category of employees (excluding Worker Category) in their organization. Thanks in anticipation.

Warm Regards,
Akanksha

Hi, I am working in a manufacturing setup with the following categories of employees:

- Worker: Includes security, operators, fitters, electricians, & helpers
- Staff: Includes secretary, assistant, executive, senior executive, assistant manager, manager, general manager

Kindly help me in designing a designation code for these employees.

Regards,
Sudesh

I am looking for the designation and scale of hierarchy in a manufacturing company. Does anybody have any information regarding this? Your immediate response will be appreciated. Very urgent.

Thanks,
Shincy K.N