What are the three ranking methods used in performance appraisal?

The correct answer, which identifies the three ranking methods used in performance appraisal, is characterized by the methods of Straight Ranking, Alternative Ranking, and Paired Comparison.

In performance appraisal, these methods serve distinct purposes and are employed to evaluate employees based on their performance relative to their peers.

Straight Ranking involves listing employees from best to worst based on their performance. This method provides a clear hierarchy but may not provide detailed insights into performance levels since it compares only performance against others without addressing specific strengths or weaknesses.

Alternative Ranking allows the appraiser to select the highest and lowest performers in a set group alternately, creating a structured ranking of employees. This method helps to ensure that both extremes are considered, thus giving a balanced view of performance across the group.

Paired Comparison requires the evaluator to compare each employee against every other employee in pairs to determine relative standing. This method is thorough and effective in distinguishing between the performances of closely matched employees.

Adopting these methods helps organizations in making informed decisions regarding promotions, salary increases, and developmental needs while ensuring that performance evaluations are objective and defendable.