Classification in a business context refers to the organization of jobs, activities, and products into categories or grades based on predefined criteria. This helps in standardizing evaluation, simplifying management, and enhancing operational efficiency.
Job classification is a method of categorizing jobs into ranks or classes for the purposes of work comparison and wage comparability. It helps organizations systematically ensure equitable and competitive employee compensation.
A systematic method of determining the relative worth of jobs in an organization. Job evaluation is important when an organization seeks to establish relative pay levels for job classifications based upon an equitable ranking of job importance and responsibilities.
