What is the result of using ranking methods in performance appraisals?

Using ranking methods in performance appraisals provides a list of employees from best to worst based on their performance. This method involves comparing employees directly against one another, which results in a clear hierarchy that indicates who is performing at a higher level and who is not. Ranking methods are often straightforward and can bring about a competitive spirit among employees; however, they can also lack the nuanced feedback that other methods might offer.

In this approach, it becomes easy to identify top performers and those who may need improvement. Organizations often find it useful for making decisions related to promotions, raises, or developmental needs based on a clear delineation of performance levels. Therefore, the ranking method's primary outcome is effectively listing employees, facilitating easier decision-making regarding human resources actions.