Ranking Method
This article covers meaning, importance & example of Ranking Method from HRM perspective.
What is Ranking Method?
Ranking method is an evaluation method where employees are ranked from best to worst in a group. Ranking method is one of the simplest performance evaluation methods where evaluating members of a team or company. The simplicity of this method is overshadowed by the negative impact of assigning a worst and a best rating to an employee. Such discriminations lead to negativity within a group and have a negative impact on performance.
Importance of Ranking Method
Companies have to constantly evaluate the performance of their employees. Evaluating employees is useful in finding which employees are good performers, which people need improvement, and who are under-performers. For carrying out an employee or team evaluation, one such method is ranking method where employees or team members are ranked as compared to each other. In this method, one employee is compared to another employee. The end result is an ordering of employees from best to worst.
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Example of Ranking Method
For example, in a group of ‘n’ employees, performance of employee-1 is compared with performance of ‘n-1’ employees. Performance of employee-2 is compared with performance of ‘n-1’ employees. This method is completed once performance of every employee is compared with that of other employees. The ‘best’ performer is then determined. The process is now repeated with’n-1’ employees till the ‘second best’ employee is determined. The process continues till the last employee is remaining and is given the tag of the ‘worst’ performer. This method leads to overall assessments of employees rather than a biased judgement.
Another method to determine rankings is the alternative ranking method in which the first part of the process identifies the ‘best’ and the ‘worst’ performer. The second part identifies the ‘second best’ and the ‘second worst’ performer and so on. Because of its discriminating nature, this method is rarely used in organizations. Also, since it is restricted to a group, comparison of employee performance across groups is not possible.
Advantages & Disadvantages of Ranking Method
A few benefits are as follows.
1. Simple way of ranking employees based on relative comparison.
2. Quick & time saving method for evaluating employees based on rankings.
However, a few drawbacks of the ranking method are mentioned below.
1. It comes across as a discriminatory way to judge & rank people.
2. This method does not look at overall employee attributes but compared people relative to each other.
3. Ranking method creates negativity amongst the employees as some are rated as worse as compared to the better ranked members.
Hence, this concludes the definition of Ranking Method along with its overview.
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