The method used for ranking employees from highest to lowest based on their value is called what?

The method used for ranking employees from highest to lowest based on their value is known as the ranking method. This approach involves comparing employees directly against each other, often through a systematic process, to categorize them in order of their performance or contribution relative to one another.

The ranking method is particularly useful in organizational settings where relative performance matters, such as in promotions or bonuses, as it provides a clear, straightforward way to see who stands out in terms of their outputs or skills. By focusing on the comparative aspect, this method assists management in making informed decisions based on the relative capabilities and achievements of their personnel.

In contrast, performance appraisal generally refers to a broader process that involves evaluating an employee’s performance against specific criteria but does not inherently rely on ranking. Evaluation metrics often focus on specific criteria for performance measurement, typically involving quantitative or qualitative measures but not directly creating a rank-order list. Assessment review can encompass a variety of evaluation processes and may include discussions or development plans rather than strictly ranking employees.