Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it.
Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established.

Evaluation types

• Job Ranking is the most simple form. Basically one just orders the jobs according to perceived seniority. This is easy to do in a small organization, but gets more and more difficult as different jobs exist within the company.

• Pair Comparison introduces more rigor by comparing jobs in pairs, but really it's a more structured way of building a basic rank order.

• Benchmarking
  Benchmarking
  Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost...
  
   or slotting sets up certain jobs that are analyzed in detail. These are then used for comparison to slot jobs against these benchmarks.

• Job Matching allocates benchmarks too, but when a position is matched the elements of the job that differ are re-evaluated. Usually this evaluation will be done with a Point Factor Analysis (PFA) or classification system.

Point Factor Analysis

Point Factor Analysis (PFA) is the old-school (but fair) bureaucratic method for determining a score for each job. Jobs are broken down into factors such as “knowledge required”. A set of closed questions in each factor break down to detail such as “level of education”. The responses to these questions are given a score, and totaled for each factor. Each factor is given a weight, and this effects the contribution made to the overall total score by that factor.

Factors can be weighted according to their significance to the organization, and this allows the pay scheme to be linked to the organization’s strategy.

Job classification

Job classification can be at the whole job or factor level. Each factor (or the whole job) is a single question that has very clearly defined levels. Compared to an equivalent PFA scheme classification, it has fewer but more complex questions requiring more job analysis from whoever is answering the questionnaire.

The modern trend appears to be away from complex PFA schemes towards factor classification methods. This puts more responsibility in the hands of whoever is doing the analysis.
this is also known as the understanding the job rate in order to get the place of the position

A United Kingdom Perspective

The late 1990s saw a move towards widespread introduction of job evaluation across government with the introduction of the Single Status Agreement for Local Authorities, Agenda for Change

Agenda for Change

Agenda for Change is the current National Health Service grading and pay system for all NHS staff, with the exception of doctors, dentists and some senior managers...

 in the NHS, Framework Agreement

European Procurement

Government procurement in the European Union is the awarding of contracts for public works and for the purchase of goods and services by the public authorities of the European Union and its member states...

in Higher Education and similar moves in the Armed Forces and Civil Service.