Which performance appraisal method involves comparing employees directly against one another?

The rank ordering method for performance appraisal is designed to assess employees by directly comparing their performance to one another. In this method, employees are ranked from best to worst based on their performance metrics or evaluation criteria. This approach can highlight the relative strengths and weaknesses of individual employees as it forces evaluators to make distinctions among them, providing a clear picture of who excels and who may need improvement.

By utilizing rank ordering, organizations can effectively identify top performers for promotions, raises, or special projects, while also helping to identify lower performers who may require additional training or support. This method emphasizes competition and can create a sense of accountability among employees, as they are aware that they will be compared directly to their peers.

In contrast, other performance appraisal methods—such as forced distribution or rating scales—do not provide the same direct comparison between employees. Forced distribution intentionally categorizes employees into predefined performance levels, while rating scales involve evaluating performance based on predefined criteria without a direct comparison to other employees. Thus, the rank ordering method remains unique in its approach to performance appraisal by relying on relative performance evaluations among peers.