The document discusses different types of grade structures used in compensation management. It describes grade structures as consisting of a hierarchy of grades or levels that group comparable jobs. Structures can be single structures defined by the number of grades, or divided into career or job families. The document then defines and provides examples of narrow-graded, broad-graded, broad-banded, career family, job family, combined, and pay spine structures.

1. Grade structure
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Grade structure
• A grade structure consists
of a sequence or hierarchy
of grades, bands or levels
into which groups of jobs
that are broadly
comparable in size are
placed.

4. Grade structure
• There may be a single
structure, which is
defined by the number
of grades or bands it
contains.

5. Grade structure
• Alternatively the structure
may be divided into a
number of career or job
families consisting of
groups of jobs where the
essential nature and
purpose of the work are
similar but the work is
carried out at different
levels.

6. Types of Grade structure
• Narrow-graded structures,
which consist of a
sequence of narrow grades
(generally 10 or more).
They are sometimes called
multi-graded structures.

7. Types of Grade structure
• Broad-graded structures,
which have fewer grades
(generally six to nine)

8. Types of Grade structure
• Broad-banded structures,
which consist of a limited
number of grades or bands
(often four to five).
Structures with six or
seven grades are often
described as broad-
banded even when their
characteristics are typical
of broad grades.

9. Types of Grade structure
• Career family structures, which
consist of a number of families
(groups of jobs with similar
characteristics) each divided
typically into six to eight levels.
The levels are described in terms
of key responsibilities and
knowledge, skill and competence
requirements and therefore
define career progression routes
within and between career
families. There is a common
grade and pay structure across all
the career families

10. Types of Grade structure
• Job family structures, which
are similar to career families
except that pay levels in
each family may differ to
reflect market rate
considerations (this is
sometimes referred to as
market grouping). The
structure is therefore more
concerned with market rate
relativities than mapping
careers.

11. Types of Grade structure
• Combined structures, in
which broad bands are
superimposed on career/job
families or broad bands are
divided into families.

12. Types of Grade structure
• Pay spines, consisting of a
series of incremental 'pay
points' extending from the
lowest- to the highest-paid
jobs covered by the
structure.