Limitations of Ranking Method:
– Ranking method, ranks all employees. However, it does not tell us how much one employee is superior to another.
– Ranking method is based on mental assessment. It is not possible to give an objective proof as to why the rater has ranked one as superior to another.
– The performance of individual employee is not compared with the standard performance decided. Employees are rated on an overall basis with reference to their job performance and not on the basis of individual assessment of traits. Here, the best is placed first in the rank and the poorest occupies the last position.
– There is a possibility of rater’s bias, which may make the appraisal defective.
– Its use is difficult in large groups when the rater cannot compare several employees simultaneously.
– Ranking method is highly subjective.
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