Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many way:
According to Kimball and Kimball,“ Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.”
Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is calculated while in performance appraisal, the worth of employee is rated.