This paper is a study of certain aspects of restricted ranking, a method intended for use by a panel of m judges evaluating the relative merits of N subjects, candidates for scholarships, awards, etc. Each judge divides the N subjects into R classes so that ni individuals receive a grade i (i = 1, 2, …, R; Σni = N) where the R numbers ni are close to N/R (ni = N/R when N is divisible by R) and are preassigned and the same for all judges. This method is superior in several respects to other likely alternatives. Under the null hypothesis that all nR = N subjects are of equal merit, four tests of significance are developed. The effectiveness of the method is investigated both theoretically by means of the asymptotic relative efficiency and more generally by simulation studies. When the numbers ni are not restricted to values close to or equal to N/R but instead are given values conforming to a normally distributed pattern, the resulting method is known as the Q-sort, so designated by certain investigators in psychotherapy. The simulation studies reveal that restricted ranking is only slightly inferior to complete ranking and generally superior in the cases considered to the Q-sort, although there are likely to be other situations when the latter is superior.