How to set career ladder for employee based on their qualification, age, experience and competence?

Define the goals yearwise and accordingly set the career ladder.  In this way you would be able to evaluate the employee progress as well.

I agree with Amal and Zafar point of view and would like to add that restructuring your workplace will require to follow these steps:

1- Define your organisational strategies

2- Define the organaizational changes to meet these strategies

3- Identify whether you need to add or remove roles from your structure

4-Alien behaviour with the new roles

5- assess applicants from different roles using competency based interview and rate it.

6- Conduct personality measure linked to competencies (consider employees historical data).

7- Reassess behaviour against the new roles to select (if required conduct psychmetric test).

A career ladder is based on criteria for positions and a possible path an individual can follow, assuming they meet the jobcroteria AND appropriate rated in the performance appraisal. So of all the items you mention, typically age and seniority in a role (as this does not relate to performance) are not qualifications.

if you communicate the career ladder, you can have ope careerdiscussions with individuals, why they are (or are not) promoted and how they can improve themselves to become qualified as per the path you discussed with them.

Hi Nusrat,

Thank you for your invitation to this question. 

Career path designed for most employees is usually based on their tenure in the company, qualifications, years and quality of experience along with their competence. A number of eligible employees can be assessed or interviewed in comparison to arrive at an appropriate selection process.

However Career Paths are also dependent on the respective departments or the overall companies manpower sizing plans.

For example: if a department has5 employees (i.e1 manager,1 assistant manager and3 officers), it would not make sense to have2 Managers in such a small department with3 subordinates. So Career paths have to be designed along with the Company's manpower and department team sizing plans.