Redefining My Company's Grade Structure: Can You Share Your Insights and Advice?

Hi All,

I need to redefine my company's existing grade structure. Can you help me with that?

Regards, Shabnam Gupta

Hello friend,

While some suggestions can be given on this issue, it is necessary to consider the objective of redefining the grade structure.

Is it that there are too many layers, and you want to reduce the number?

Or is it that the definition of grades is causing some problem?

There is no single formula for defining the structure. We could consider 4 levels in the management category:

1. Junior Management - Asst Manager and Deputy Manager

2. Middle Management - Manager and Senior Manager

3. Senior management - Deputy General Manager and General Manager

4. Top Management - AVP and VP

So if we divide the 4 levels into 2 bands, we have 8 grades.

If we divide any level into more grades, the number will be even more.

We also need to define the role responsibilities for each level in generic terms and calculate POSITION VALUES through. There are various methods for job evaluation; one is "Hay's Job Evaluation method" which calculates a position based on Knowledge, Problem Solving, and Accountability as key elements.

You may need help from an HR consultant for position evaluation.

If you give more details on the issue, there will be more specific suggestions for the CiteHR members.

Regards,

Nishikant

Hi,

How big or small is your company? How many employees do you have? What is your turnover and industry? How many locations do you operate in?

An organization typically has five distinctive levels:
Level 1: Doers/Front-end people
Level 2: Implementors/Supervisory/Managerial Roles
Level 3: Planners/Problem Solvers/Guiders
Level 4: Strategists/Link between the Board and the organization/Business Heads
Level 5: Visionaries/Long-term Thinkers

Level 1 may have more grades, let's say three to four grades. The other levels will have two grades. Level 5 will have just one grade.

Depending on the size of your company, you can decide on the tools to be used.

Siva