Certified Human Resource Professional (CHRP) Practice Exam

What method of performance appraisal involves a supervisor comparing the performance of each employee to every other employee?

1. Forced distribution

2. Paired comparison

3. Relative percentile

4. Absolute rating

The correct answer is: Paired comparison

The paired comparison method of performance appraisal requires a supervisor to directly compare the performance of each employee against every other employee in a systematic manner. This approach allows for a detailed analysis of performance levels, as each employee's performance is evaluated in pairs, resulting in a ranking based on how they measure up against one another. In this method, a supervisor assesses which individual performs better in each pair, leading to a comparative ranking of all employees. By the end of this process, it becomes possible to determine the relative effectiveness of each employee within the group. This form of evaluation is particularly valuable in identifying top performers and those who may need improvement, which supports making informed decisions regarding promotions, raises, or development opportunities. Other methods mentioned, such as forced distribution, involve categorizing performances into predetermined percentages, which may not provide as nuanced a comparison as the paired approach. Relative percentile focuses on ranking based on a defined population, while absolute rating assesses individuals against fixed standards rather than directly against one another. Therefore, the paired comparison method is notably effective for direct, one-on-one evaluation of performance.