The process of establishing pay rates for different jobs based on their relative worth is:

The correct answer is Job evaluation. Job evaluation is a systematic process used to determine the relative worth of different jobs within an organization. It assesses jobs based on factors like skill, effort, responsibility, and working conditions to establish a fair and equitable pay structure, ensuring internal equity.

• Job analysis (A) is the process of gathering detailed information about a job's duties, responsibilities, and requirements, which is a precursor to job evaluation but doesn't directly set pay rates based on worth.
• Market pricing (C) involves setting pay rates based on what competitors pay for similar jobs, focusing on external equity rather than internal relative worth.
• Performance rating (D) assesses an individual employee's performance, which influences individual pay adjustments (e.g., merit increases) but not the base pay rate for the job itself.