Skip to Content

SHRM-SCP: Job Ranking As The Best Method for Creating Formal Hierarchical Structure in Small Firms

Learn why job ranking is the ideal nonquantitative method for HR managers to strategically evaluate positions and establish a formal job hierarchy in small engineering companies.

Table of Contents

Question

Which is the best method an HR manager of a small engineering firm should use to strategically evaluate all positions within the firm to create a formal hierarchical structure?

Answer

Job ranking. Job ranking is a nonquantitative method used to evaluate the entire job and sequence jobs in hierarchical order based on their value to the organization.

Explanation

The best method for an HR manager of a small engineering firm to strategically evaluate all positions and create a formal hierarchical structure is job ranking.

Job ranking is a nonquantitative job evaluation method that assesses the overall worth of each position and ranks jobs in a hierarchical sequence based on their relative value to the organization. The HR manager would examine each job as a whole, considering factors such as skill requirements, experience needed, scope of responsibility, and importance to the firm’s mission and success.

By comparing jobs to one another, the manager can determine which positions are more critical or valuable, and slot them into the appropriate level in the hierarchy. Jobs of similar importance are grouped together.

This nonquantitative, comprehensive approach is well-suited for smaller organizations like an engineering firm, where an in-depth understanding of each role allows for a holistic assessment and logical structuring without complex quantitative analysis. The resulting job ranking and formal hierarchy clarifies reporting relationships, spans of control, and career paths.

In contrast, methods like factor comparison or the point method are more quantitative and better for larger organizations. But for strategically evaluating all jobs to develop a sensible hierarchy in a small firm, job ranking provides a straightforward yet robust solution.

SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.