This is discussion in CiteHR looking at Job family and grading matrix http://www.citehr.com/288073-job-family-grading-matrix.html
Every company designs the jobs families to group on the basis of purpose and characterisation of the tasks into roles. The various levels at which the work is done is delineated by means of a role profile – essentially a word picture describing the key factors which differentiate one level of job from another (the responsibilities or tasks to be carried out and the knowledge, skills and behaviours that underpin successful performance in the role). Each job family sets out a career path by clarifying the criteria for advancing from one level within the family to the next or to a role within a different family. Different functions include these job families to manage the workflow and chain of command. This forms to divisions including Operations, Finance and HR and process formation that culminate in to different systems.
The Job families are mapped into broad banding which includes the grading to apportion the compensation and rewards. These are designed to be market competitive. It is easier to match job functions where external reference is easier to find. Whereas niche jobs stands as a challenge to be mapped into an industry competitive compensation package. These jobs are drawn parallel to jobs where similar skills might be used at equally responsible level.
Bands are formed with levels embedded in them to included different degree of responsibilities within each set. It begins with Trainee including new recruit learning the basic job. This is followed by Individual contributors and supervisors. This would include the team level quality and business analysts who might be considered as Subject matter experts.. This level is preceded by managers who report into senior manager and AVP who would be responsible for budget and operational medium to long term planning. The level which is followed is the VP who has functional level responsibility towards the business unit’s performance. CEO remains at the top holding the enterprise level responsibility.
The business requirement governs the implementation of the job families. Hewitt recorded eight families in banking in its study of ‘Compensation and benefit survey 2010’ in GCC and Middle East. Whereas Mercer has reported nine job families for Retail and Apparel in US. EIS reports Health care and media to have IMS with ten and BBC with nine job families respectively.
The job family approach stand to certain challenges. The mapping should be connected to the business unit to ensure that the cost incurs under the right heading. The metrics drawn later to measure the process would stand skewed if the job families are incorrectly mapped. For e.g.: Audit is considered under Finance. Yet in-house audits, that are done biannually needs to be owned by each process. Every vertical declares a single point of contact for its auditing. The cost incurred for the audit is shared by every function. Similarly Grading mix and doling out rewards will motivate accordingly. If operation requires increasing productivity, it will be supported by training and performance bonus. Finally certain families may require blocking few grades as the responsibility have been managed differently. An operation vertical may have five bands and eight levels , whereas HR may have five bands with five levels.