Also known as job classification.
Job classes or grades are established.
A job grade is a group of different jobs of similar difficulty or requiring similar knowledge and skills to perform. Each job grade is defined in the form of a written description. Each job is classified into an appropriate grade depending on how well its characteristics match the grade definitions. For this purpose job descriptions are carefully analyzed in terms of knowledge, skill, and so on. In this way a series of job grades in developed and a different wage rate is fixed for each job grade.
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