Which performance appraisal type compares employees to each other?

The Paired Comparison Method is a performance appraisal type designed to evaluate employees by directly comparing them against one another. This approach involves assessing two employees at a time on specific performance criteria. By comparing employees in pairs, this method enables an evaluator to identify who performs better in each pair, ultimately allowing for a ranking of all employees based on their overall performance.

This technique is particularly beneficial in scenarios where relative performance is critical, such as in competitive environments or for teams where one individual's performance may impact the dynamics of the group. The outcome is often a clearer picture of employee performance, as it reduces biases that may occur when evaluating individuals in isolation.

In contrast, the other options provided do not focus on comparing employees against one another in such a direct manner. Management by Objectives focuses on setting individual performance goals in alignment with the organization's objectives, while the Checklist Method involves using a predefined list of criteria to evaluate each employee independently without pairwise comparison. Progressive Discipline, on the other hand, is a process related more to managing employee behavior and performance issues rather than a method for conducting performance evaluations.