What is job evaluation in compensation management?

HI,
I was reading the Pdf from SAP but couldn't really understand what is job evaluation. I was wondering where we use it, how the jobs are evaluated, how do they come up with evaluation points. Please explain with some example. Also how job evaluation different from Salary survey results.
This is what I found from SDN PDF. Job evaluation results are used to determine the relative worth of each job and position in your organization.
This infotype is divided into subtypes. Use the subtypes to represent different job evaluation
systems. This allows you to store different sets of job evaluation results.
Subtype EV01 = Hay System
Subtype EV02 = In-house job evaluation system
Subtype EV03 = John Smith consultants
Thanks,
Jess

HI Jesica,
Job evaluation is the criteria to have a market rate for each of the job which is achieved via surveys by external consultants.
Job evaluation results to determine the relative worth of each job and position in your organization.
Example.. across the organization Jobs are defined like SAP HR
Rate for that job in different organization is say
org x 1000
org y 1200
org z 950
now we can store the results of surveys and can have a benchmark for job SAP HR as 1100
Regards,
Kapil

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