Which method requires employees to be ranked from highest to lowest performance?

The ranking method is specifically designed to arrange employees in order based on their performance from highest to lowest. This approach allows organizations to evaluate relative performance within a group, offering a clear, comparative view of employee effectiveness. By ranking employees, managers can identify top performers and those who may need improvement.

This method is particularly useful in competitive environments where distinguishing between high and low performers is crucial for decisions related to promotions, raises, or professional development opportunities. The emphasis on relative performance also facilitates discussions about best practices and where employees can learn from their peers.

Other methods like results-based systems focus primarily on the outcomes achieved rather than comparing individuals directly against each other. The essay method involves qualitative assessments without a structured ranking, while halo error refers to a bias that occurs when a manager's overall impression of an employee affects their evaluations of specific performance traits, rather than employing a structured ranking process. Thus, the ranking method uniquely emphasizes a comparative approach to performance appraisal.