The HR Dictionary

Job Classification

A system of classifying jobs based on the present responsibilities and functions is known as job classification. It differs from the job design because the employee hired for a specific job is not taken into account. Usually, jobs are categorized into several grades, with each grade having a distinct class description and frequently a pay scale that is used to compare jobs. The title is also given based on the grade determined following the job classification.

Importance of Job Classification

Variables including the breadth and depth of a job, decision-making authority, and how it relates to other positions are taken into account in job classification. They usually alter as a result of new management initiatives, new rules and processes, and frequently the introduction of new technologies. Job classification is most commonly used to:

  • Aid in hiring and selecting candidates by establishing important qualification standards.
  • Assist in creating and developing performance standards.
  • Allocate tasks that support the realization of an organization's business plans and strategies and make sure they are in line with the mission and vision of the company.
  • Develop organizational career and growth paths.
  • Develop compensation guidelines.