Grading is ... Planning and management of the personnel

The labor market and its payment systems are constantly changing. This is due to the development of technology, the redistribution of resources, economic instability and loss-making of budget organizations. During the financial crisis, there is an objective need to optimize the functioning of commercial, lucrative organizations and enterprises of budget financing (non-profit sector). Non-profit organizations, even in a stable economy, are an expense item of the state budget. In this regard, the innovative system of wages is topical - grading (grading system), widely used in the West.

Essence of grading

By definition, grading is a way to optimize the organization's resource allocation, which allows:

• Bind the system of distribution of benefits and bonuses;
• Calculate the compliance of expectations on wages and labor market dynamics;
• To regulate the wages with the help of the principle of internal justice, which is the basis of the system and avoids the spread of z / n within the enterprise;
• Increase the level of responsibility of employees and management of labor resources (each employee of the organization understands that his profits directly depend on the job evaluation);
• Raise the level of transparency of the organization for investors by means of management standards and, correspondingly, increase its cost.

Let's take a closer look at what graduation is. This level, rank, degree, class, rank (with English.). The essence of grading is the division of all posts into grades according to the complexity and intensity of work, the skill levels, the conditions of the organization of labor, the value of the worker for the organization. In other words, grading is the distribution of posts by positions in the hierarchical structure of the organization according to the value, size and structure of the salary.

When dividing by grades, an assessment is made of the activities performed at each position. For this, the factors that are considered to be the most significant are taken as a basis:

• knowledge;
• an experience;
• Skills needed to solve problem situations;
• Level of responsibility.

Grade system

The use of the grading system affects the optimization of the wage fund and needs resources to maintain. The main problem is the estimation of the cost ratio for the implementation and the expected return in the financial equivalent. Today, the application of the grading system is relevant for the calculation of awards on the basis of points (taking into account the factor method) and the matrix-mathematical model. What is the basis of a system that uses grading? This is the technique of Hay's guide tables. Today it is the most common. It is used to rank and evaluate managerial positions, professionalism and technical level of specialists. It is successfully used in most countries of the world (more than 30).

The system that allows grading posts is familiar to Russia and the entire post-Soviet space. This is analogous to the familiar system of discharges. Now it has undergone modernization and adaptation to modern market conditions. The project requires significant investment and is not the only version of the human resources management system.

Prerequisites that determine the graduation of company personnel

• Absence of an internal fair wage system in the organization.
• System s / n in the company does not reflect its specificity.
• Absence of an understandable and clear system of remuneration and career growth.
• Low level of cost control (FOT).
• The importance of positioning and creating a positive image of the organization in the labor market, among customers and partners.

Main Factors of Management

According to Haye's tables, the top manager can determine the levels of pay for the company's employees. All positions are evaluated on several parameters, divided into three groups:

• Knowledge and skills necessary to fulfill official duties. Here, the monotony of the performed function is assessed, the presence of contradictions in the functions and the ability to control them, communication skills. The result depends on the level of the communicative features of the employee, as well as whether he has the need to motivate other people. It is worth noting that an assessment of the level of requirements for the post, and not the capabilities of a particular person.
• Problem solving. It measures the complexity and scale of the tasks (are there restrictions on which, standard and variable characteristics, the presence or absence of ready solutions, the need for basic research)?
• Responsibility is a complex parameter that shows the ability to freely make decisions in a particular position. It is important to find out how much authority allows decisions to be made. When this factor is taken into account, the degree of direct or indirect influence on financial results and their scale is measured. When it is difficult to identify the financial component, assess the relative complexity of the work.

These factors provide universality for any field of activity. Depending on the structure of the organization, the number and scope of activities, the list of factors can be much broader. For example, the level of intellectual activity, professional risk , etc. For different levels of positions, factors may vary slightly.

Basic approaches. Where the system of grading justifies itself

Depending on the scope of activity, they are:

• The evaluation of the position or competencies of a particular employee;
• Assessment of workplaces (in enterprises with productive capital);
• The competence of specific specialists (in companies where intellectual capital predominates).

Where the system of grades is used:

• When reviewing the structure of the organization;
• To determine the salary of new employees;
• When reviewing the payment of labor;
• To determine the level of career development of employees;
• When comparing the wage system to the market.

Graduation justifies itself in medium and large firms, where the personnel structure is not always clear, and its optimization is likely to lead to significant gains in the future. After such a system is implemented, the permanent part of the remuneration of employees will include the official salary, allowances and additional payments according to the labor legislation.

Instrument of motivation, advantages and disadvantages of grades

An excellent modern tool for motivating staff is grading. When implementing such a system in an enterprise, the positions are distributed so that at the first level there are managers, then a grade of positions that generate revenue, followed by employees (lawyers, managers, etc.). A person who is an ideological leader in business, his owner or hired manager (professional) is the top manager of the company. He is a perpetual motion machine and has no right to bad state of health, mood and other reasons that reduce the effectiveness of the organization. It is logical that the system of grades puts this post on the highest level for remuneration of labor. At the same time, it must have in its hands a system that allows to harmonize salaries, order them according to the classification. This is the grad approach.

The merits of the system include:

• transparency;
• justice;
• Method of attracting and retaining employees;
• Good budget management;
• Openness of career prospects;
• Increased effectiveness of material motivation.

The main disadvantage is the high cost of implementing and maintaining the system, as well as the difficulty in determining the financial return that is expected. As a tribute to the fashion to implement the system is irrational.

Personnel management and grading stages

Personnel management is a systematic and planned impact on the formation and distribution of the workforce of an organization through interrelated organizational, economic and social measures to maximize the impact of the work of the enterprise.

The control system includes a linear subsystem of the manual and specializing functional subsystems of homogeneous functions. The key element in personnel management is the line manager of the organization, who is personally responsible for the adoption and implementation of managerial decisions.

Grading stages:

• Assessment of the strategy, current state, internal equity and external competitiveness of wages, benchmarking and labor market analysis.
• Development of the regulations, methods of the graduation system, their parameters, salary level, bonuses and benefits, key factors of job evaluation; Description and assessment of posts; An implementation plan and a communication plan are formed.
• Implementation, monitoring and support of developments, recommendations, information materials, corrective actions, training of managers and employees.

What can be expected when implementing planning and management with the help of grades?

Competent salary formation will increase the efficiency of using FOT from 10 to 50 percent. This is especially important in a crisis. The introduction of an innovative grading system will allow any company to feel competitive both on the domestic and foreign markets.

This is due to transparency for investors and positioning themselves as a serious organization. Such an enterprise will be able to attract high-quality top-managers and specialists from all over the world. Such a system is an alternative to payment in municipal spheres, local self-government bodies, etc. It motivates employees and raises the effectiveness of the result.