Which method is commonly used for evaluating a group of employees' performance through comparison with one another?

Forced ranking is a performance evaluation method that involves comparing employees against each other to classify them into distinct performance categories. This approach typically mandates that a certain percentage of employees must fall into each category, such as high performers, average, and low performers. Consequently, it encourages a competitive environment where employees are assessed not only on their individual merits but also in relation to their peers.

This method has become popular in various organizations seeking to identify top talent and make strategic decisions regarding promotions, rewards, and development needs. It is particularly effective in large organizations where individual performance might be difficult to assess in isolation without some form of comparative analysis.

Other evaluation methods, such as self-assessment, peer review, and graphic rating scales, focus more on individual performance or subjective input rather than direct comparison among employees. Self-assessment involves individuals rating their own performance, while peer review collects feedback from coworkers. The graphic rating scale allows managers to evaluate employees using a set scale for specific performance metrics but does not inherently involve ranking employees against one another.