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Ranking Method

Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. There often is no actual standard form used, and we don’t always have to rank all employees. Managers have to make evaluative decisions such as determining who gets a raise or promotion and who gets laid off. So when we have to make evaluative decisions, we generally have to use some type of ranking. However, our ranking can, and when possible should, be based on other valid and reliable methods and forms. Managers can also use ranking for developmental purposes by letting employees know where they stand in comparison to their peers—meaning managers can use rankings to motivate employees to improve their performance. Using the ranking method for employee development is generally more valuable to the organization than using it for evaluative purposes. Under the ranking method, the manager compares an employee to other similar employees, rather than to an objective standard.