The XYZ Company ranks its employees from the best performer to the poorest performer, and the employee with the best performance receives the highest ranking. What type of performance appraisal method is used by this company?

The correct answer is comparison system.

Explanation:

Method in which the chief and subordinate establish by consensus the goals to be achieved and the deadline to achieve them, according to the functions and responsibilities of the position, then periodically review their progress. Goal setting is a participatory process - employees, teams, leaders - consisting of two fundamental steps:

1. Plan the performance: It must be done before the start of the period; boss and employee or boss and work team plan, review and evaluate the aspects of general performance related to a set of responsibilities and agreed objectives that derive from the mission and vision, strategies and objectives of the organization.

2. Determine and communicate to employees the way they are performing their work and meeting the objectives, compare expected results with effective results to identify strengths, weaknesses and corrective measures, thereby contributing to the achievement of business objectives.