Final answer:
The performance appraisal method where a supervisor compares each employee with every other employee is known as paired comparison. This method differs from the more comprehensive 360-degree feedback appraisal, which incorporates perspectives from various stakeholders to assess an employee's performance.
Step-by-step explanation:
The method of performance appraisal that involves a supervisor comparing the performance of each employee to every other employee is called paired comparison. In this method, the evaluator systematically compares the performance of each employee with every other employee to rank them in order. This can be particularly useful in relative performance measurement, where the objective is to rank employees by performance levels to distinguish between high and low performers, rather than to measure against a fixed standard. It is important to note that while paired comparison is a traditional method, modern approaches like the 360-degree feedback appraisal are also commonly used. The 360-degree feedback appraisal is a more complex system that derives from a combination of ratings by different stakeholders, including supervisors, peers, subordinates, and sometimes customers, providing a more rounded perspective on an employee's performance.