1. Evaluator places employees into a particular classification, such as the "top 20 percent"
2. Often used in recommending students to graduate schools, where evaluators are asked to rank the student in the top 5 percent, the next 5 percent, the next 15 percent, and so forth
Individual Ranking assumes the difference between the first and second employee is the same as that between the twenty-first and the twenty-second, even though some of these employees may be closely grouped</b>
Research studies into the effectiveness of 360-degree performance appraisals are generally reporting positive results from more accurate feedback, empowering employees, reducing subjective factors in the evaluation process, and developing leadership in an organization