What performance appraisal method involves ranking all employees from a group in order of overall performance?

The ranking method is a performance appraisal technique specifically designed to compare and order employees based on their overall performance. This method requires the evaluator to assess the performance of all employees within a specific group and rank them from the highest performer to the lowest. This approach simplifies the evaluation process when there is a need to identify top performers and those who may need improvement.

The ranking method provides clarity and a straightforward way to identify distinctions in performance, making it useful in competitive environments where organizations seek to reward high achievers or identify candidates for promotions. Unlike other methods, such as the rating method, which uses a numerical scale to evaluate performance on various criteria, or 360-degree feedback, which collects input from various sources without a specific ranking, the ranking method directly emphasizes relative performance among peers. This straightforward nature can sometimes lead to challenges, such as difficulty in distinguishing between employees who perform similarly or the potential demotivation of lower-ranked employees, but it remains a clear method to convey performance standings.