In the context of HR Management System (HRMS) software, the terms "grade" and "entity" typically refer to elements of the organizational structure, hierarchy, and employee management that the system tracks and organizes. Here's an explanation of each:
"Grade" refers to an employee's classification within an organization's hierarchical structure, often related to their job level, position, or salary band. It typically represents a specific step or rank within an organizational hierarchy and is often linked to compensation, responsibilities, and promotion criteria.
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Purpose: Grades are used to define a clear structure for the organization's workforce and help HR departments manage employee roles, salaries, career paths, and promotions. 
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Examples: 
- Job Grades: An organization might have several grades (Grade 1, Grade 2, Grade 3, etc.), where each grade represents increasing levels of responsibility and compensation. For example:
 
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Grade