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grade


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A grouping of jobs with equivalent demands which are offered the same rate or range of pay. Jobs are often allocated to grades through a formal process of job evaluation, which can be used to establish their relative demands. A pay structure will typically comprise a hierarchy of grades with less demanding jobs occupying the lower grades and more demanding jobs occupying the higher. Reflecting the movement towards flatter organizational structures (see delayering), there has been a simplification of grade structures in many companies in recent years through the process of broad-banding.

Subjects: Human Resource Management.


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