Job classification

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Job classification is a method of classifying all the jobs within a business. Then those are put in the normalized scale, on the ground of general tasks, responsibilities, salary level and jobs assigned to specific positions.

Each task is assigned to relevant level of job classification in order to ease organizing and categorizing the levels.

Every business has its own structure of classification. The main aim of classifying the structure is to define tasks people on specified positions are responsible for.

In the classification skilling nor abilities of current worker are considered, but the required for the perfect candidate as per job analysis[1].

For Company

Job classification helps circumscribe benefits form the job to the whole business. It is also used to review productivity, job offers and to check if any task is duplicated across the positions.

Due to the standardization resulting from the grading system it is used as a tool throughout company and business. Its destination is to ensure that all the tasks are defined[2].

Hay System

Hay System is one of the job classification method. It is helpful in understanding the job gradation. There are three components used:

  • Knowledge that is required for the job,
  • Ability to solve problems coming up in the role,
  • Accountability desired for the position.

The system downloads the information to correlate responsibilities and salary on different positions to check equality. The aim of the system is to assure of standardization across the company and ease defining needs. Also it ensures that the salary is based on responsibilities as per position[3].

Advantages of Job Classification

The main advantage is possibility to classify and group similar tasks and jobs. It improves workflow and checks if there are any groups of jobs that can be fragmented within the firm. As per that the structure of pay system. In that case pay levels are collated into fewer pay ranges. Although the wider pay ranges, enable pay rise system based on tasks and responsibilities, without necessity to promote an employee[4].

Disadvantages of Job Classification

Major issue with the job classification system is the lack of data, as it can be mostly taken from company that both creates and applies it. As per that when designing new position, Human Resources department need to compare it with the already existing jobs. Each task would have to be reassessed in terms of creating new task. Due to engagement and subjective way of judging each person can describe the position in different way and pay attention to different details and responsibilities. That is why companies usually use outsource firms to describe and classify the knowledge, problem solving skills and accountability required for work. This is both time and money consuming process and may be risky for the management to let somebody in the company's structure[5].


  1. Berman E., Bowman J., West J., Van Wart M., 2019, p.190-203.
  2. Chi N., Lin K., Hsieh S., 2014, p. 381-394.
  3. Scott J., Reynolds D., 2010, p. 197-2010.
  4. Bu-Yeon P., Dae-Sik K., Hyung-Su P., 2013, 941-947.
  5. Bu-Yeon P., Dae-Sik K., Hyung-Su P., 2013, 941-947.

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Author: Anna Zalewska